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Vulture Investors Heed Caution: Creditors Committee and Trading May Be a Dangerous Combination

In the past, debtors utilized the protections of Chapter 11 to fix their operations and emerge from bankruptcy with a viable business. In this article, by James H.M. Sprayregen, Jonathan Henes, Lisa Laukitis and Javier Schiffrin, the authors discuss a new phenomenon in Chapter 11 filings over the last several years -- the emergence of an active secondary market for trading of distressed debt, and specifically "vulture" investors.