As part of Mission Capital’s portfolio of services we have a fully operational bankruptcy claims desk specializing in the sourcing, trading, and auctioning of general unsecured claims. By bringing together both a wide range of creditors and a broad base of buy side clients we are able to efficiently trade general unsecured claims into the secondary market. Acting as an intermediary on either side of the transaction allows us to maximize value to our clients whether they are liquidating their position through a structured auction or looking to accumulate a portfolio of claims.
GENERAL UNSECURED CLAIMS
General unsecured claims are claims without a priority for payment for which the creditor holds no security or collateral. These claims are comprised of vendor claims/trade payables, rejected executory contracts, tax indemnity claims, unsecured bank debt, unsecured bonds, litigation judgments and settlements, unsecured inter-company payables, deficiency claims, etc. In many instances a company in bankruptcy will have unsecured bonds which are treated with the same priority, i.e. pari passu, as the general unsecured claims. In addition to independent analysis, the price of these bonds gives claim buyers an excellent benchmark with regards to pricing the unsecured claims. The benefits of buying general unsecured claims from non-bondholders comes from the more illiquid nature of the debt, the lack of coupon and their resultant discount pricing to where the pari passu bonds are trading.
MAJOR CASES IN WHICH WE HAVE TRADED CLAIMS
The members of our desk have experience trading both domestic and international unsecured claims. Cases in which we have transacted include: Spiegel, Stelco, Kmart, Delphi, Jetsgo, Payton, Ivaco, Cirio, Enron, Farmland, Worldcom, Adelphi, Parmalat, USG, Deltrak, PSINet, Sonic Blue, Calpine, Federal-Mogul, Interstate Bakeries, Oglebay Norton, Superior Offshore, Nutritional Sourcing, Best Manufacturing, Penn Traffic, Winn-Dixie, R&S Strauss, NARCO, Teleglobe Comm., Swiss Air, Northwest Airlines, Delta Airlines, United Airlines and Just For Feet.
WE ARE CURRENTLY SOURCING CASES
We are actively sourcing and auctioning claims in the following cases: Quebecor, ProxyMed, Plastech, New Century, Marchfirst, Nortel, Washington Mutual, Sentinel Management, Hoop Retail Stores, SageCrest Funds, All American Semiconductor, Pierre Foods, Just For Feet, Superior Offshore, Lehman Brothers and Nutritional Sourcing.