WL Ross and Plascar

  • Reference: HBS-209091-E

  • Year: 2006

  • Number of pages: 16

  • Publication Date: Mar 4, 2009

  • Fecha de edición: Nov 25, 2009

  • Source: HBSP (USA)

  • Type of Document: Case

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Description

How can distressed investors take advantage of the procedures governing an international bankruptcy? Wilbur L. Ross, chairman and CEO of the private equity firm WL Ross & Co., LLC, has the opportunity to bid for debt and equity claims on Plascar Industria e Comercio Ltda., the Brazilian subsidiary of the bankrupt global auto components company Collins & Aikman Corp. In evaluating this opportunity, students must analyze Ross's strategy to reshape a global industry with significant overcapacity, consider the opportunities created by the legal procedures that govern cross-border insolvencies, study a debt overhang problem, and consider how restructuring alternatives can address this problem.

Keywords

Cross-cultural Relations Debts Finance Insolvency International business International finance Investors Private equity Restructuring