Distressed Debt Investors Club Update

Last week we announced the launching of the Distressed Debt Investor Club. I am happy to say that we are getting more members and guest applications than we had ever expected at this point. Remember, the goal of this group is not to bring in thousands of people to crank ideas out left and right. Given the choice between quantity and quality, I will always choose the latter.

I am trying to establish a group of the top high yield, distressed debt, and event driven portfolio managers and analysts (buy-side and sell-side) where information is valuable and can be relied upon. That is why there is an application process. I want to be able to rely on the DDIC and its members to produce alpha generating ideas up and down the capital structure.

And, in the illiquid securities that many of us distressed debt investors deal with on a daily basis, having TOO many eyeballs on a particular situation is self-defeating.

Right now, the only users on the site are the beta testers. I have gone through about 25% of the applications at this point and expect to get the balance done through the weekend. By Wednesday of next week (I will be at G2E on Monday and Tuesday), I expect to invite a number of applicants to become members of the site. And by the end of the year, I hope to have at least 50% of the 250 total spots filled with high caliber professionals sharing and bouncing ideas off one another.

To give you a flavor of some of the applications, here is just a sample of situations that have been submitted for applications:

General Growth Properties

Blockbuster

Accuride

Smurfit-Stone

CCRT

Alion

Reader's Digest

ILFC

True Temper Sports

Horizon Lines

And about 30 other truly fantastic opportunities ranging from equity shorts to distressed debt long.

If you would like to apply, please visit the Distressed Debt Investors Club. We hope to see you there.