State of Distressed: Trucano on Distressed Investing’s Evolution

“In the past, I think a lot of times [sponsors] just handed the keys over if they were hopelessly insolvent,” industry authority David Trucano says. “Now [the market has] basically...

By Mariam Traore · Bloomberg

“In the past, I think a lot of times [sponsors] just handed the keys over if they were hopelessly insolvent,” industry authority David Trucano says. “Now [the market has] basically written, through credit agreements, a call to the equity such that they can extract additional value through the capital structure and preserve value for themselves. And as a fiduciary, they’re required to do it.” Bloomberg Intelligence’s Phil Brendel and Noel Hebert sit down with Trucano (formerly of BlackRock, Cente