Bloomberg Article on Rolta

Shortly after writing our last article on Rolta India’s restructuring proposal, “In Response to Rolta’s Restructuring Support Agreement“, we were contacted by a reporter from Bloomberg covering the story for a phone interview with Randy Durig.  The notes from the interview can be found below.   Rolta Debt Plan ‘Misguided,’ Better Deal Needed, Hedge Fund Says By David Yong, Bloomberg (Bloomberg) — Rolta India’s plan to restructure about $500m of defaulted notes is unlikely to succeed because it imposes bond haircuts while preserving equity holders, according to U.S. hedge fund Durig Capital, Inc. “The bond restructuring plan is misguided,” CEO Randy Durig says in a phone interview from Oregon. “These past two years, we have been playing a game of rewarding stockholders first at the demise of bondholders”. “In a Read More …

Why Small Hedge Funds Have Historically Outperformed Their Larger Brothers – An Analysis by Distressed Debt 1 Hedge Fund

                    Historically, smaller hedge funds have fared better during periods of financial stress than large hedge funds Two thirds of global hedge fund assets are managed by only the top 6% largest of all hedge funds Numerous studies have found that, over time, smaller hedge funds & emerging managers outperform the returns of larger hedge funds & established managers   With the largest hedge funds (those with AUM ≧ $1 Billion) managing an estimated 90% of the roughly $3 Trillion in global hedge fund assets (1), one may begin to wonder if there is too much money chasing too little talent.  To put this figure into perspective, there are fewer than 400 hedge funds considered to be “large”, while there are Read More …

Cumulus Media’s Restructuring Proposal Unfairly Favors Banks – An Analysis By Distressed Debt 1 LP Hedge Fund

We at Distressed Debt 1 LP, and Durig Fixed Income 2, would like to present an explanation of the underlying issue with Cumulus Media (CMLS) current restructuring proposal, as we see it. First let’s get an understanding of its valuation. Last quarter’s EBITDA for Cumulus Media was reported at $61.8 million.  Radio media companies historically trade above ten times EBITDA, especially for those growing profits.  Since the new management has been involved, the company’s bottom line is growing.  So, we will use a simple 10x’s multiple.  As the run rate of last quarter’s EBITDA was $61.8 million, multiplying times 4 quarters, times ten,  gives an enterprise valuation estimate of around $2,472 million. There are two debt issues outstanding, the first being $1,728 million in notes, and the other being $610 Read More …

Distressed Debt Hedge Funds Can Deliver Surprising Performance

              We just celebrated two years of the Distressed Debt 1 LP Hedge Fund!   As one of the top performing Hedge Funds, Distressed Debt 1 LP is managed by Randy Durig, who has published articles  online for over two years,  and we would like to update our readers on our market perspective and reasons for the hedge fund’s outstanding performance. Distressed debt is often uncorrelated with traditionally composed portfolios and equity markets, and when actively managed as an asset class, has been a top performing security class as judged by these historical studies: Distressed Debt as an asset class  has historically outperformed the S&P 500 TR Index Numerous studies have shown that Distressed Debt as an asset class has consistently surpassed the returns Read More …