vulture investor

Vulture Investor

1. In venture capital, an investor who buys a company with an excessive amount of debt in the hopes that streamlining and reorganization will make the company profitable. Vultures engage in a high risk, high reward type of investment.

2. An investor who buys an invention from the inventor. The term in this sense is slightly derogatory, as the vulture investor usually profits from the invention while the investor does not.

vulture investor

An investor who attempts to profit by buying debt of bankrupt or credit-impaired companies. Vulture investors are generally interested in the debt of problem companies that hold substantial tangible assets.
References in periodicals archive ?
The domestic vulture investor focuses on the obligations of firms, while the internationally-focused vulture speculates in the debt of sovereign issuers.
Comparing the performances in post-bankruptcy to pre-bankruptcy levels, bankrupt firms with hedge fund involvement tend to be in better shape than those without any vulture investor involvement.
In theory, anyone can become a vulture investor, including private investors.
The ratio of direct costs to assets for traditional Chapter 11 is lower for larger and less solvent firms, if a vulture investor holds a 5% or larger stake in the reorganized firm, and if the firm is an HLT.
You might have received a letter from a vulture investor back in 1988, with a $.
The dot-com may also have a vulture investor that owns options that trigger negative covenants.
com was inspired to leverage their technology and network to help these flood victims after seeing vulture investors target homeowners during this difficult time.
But so-called vulture investors saw an opportunity to make even larger profits.
One source said MLB is holding up trading in the loans because of concerns that vulture investors will snap up the debt and force the team into bankruptcy -- just like they did last year to the Texas Rangers.
Istithmar had been planning to convert the site's 300,000-square-foot office building back into a high-end hotel, and now that Dubai is out of the picture, vulture investors are reportedly chomping at the bit to take the helm at a steep discount.
They see the vulture investors as recklessly wiping out the workers' pension plans, all the while knowing that the PBGC will bail them out and raise premiums on companies playing by the rules to make up the difference.