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Message: <blockquote data-quote="hxnnahrobinson" data-source="post: 248278" data-attributes="member: 26629">No worries, I have rewritten it slightly so it is clearer. And for a distressed company, they are already experiencing limited fundsDebt investors (creditors) must be repaid first if things go wrong. Equity investors only get their cash invested back after all debts are paidDistressed funds shall usually buy the debt to take control, purchasing debt at a large discount and then using their creditor rights to covert that debt into ownership. This could occur through convertible or exchangeable bonds.The fund becomes the majority new owner, and so the existing shareholders would be heavily diluted.Equity investors with to keep their shares alive and maintain ownership. Increases in company value will elevate their share value and return on investment. Yet the specialist funds wish to dilute the company ownership structure to fix the balance sheet.You could argue that the distressed funds are correct because the equity shareholding will gain their value once the debt is largely eliminated/fixed.</blockquote>

Verification: Our company is called, "The Corporate ___ Academy". What is the missing word here?

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