Special situations - a focus that reflects an investment opportunity of a specific nature that allows the acquisition of an asset below market value due to certain factors.
This may include corporate conflicts between partners, complex litigation around the business, defaults on obligations to creditors, bankruptcy, claims by regulators, criminal law problems, and more. All these factors have a negative impact on the value of the business. The goal in acquiring such assets is to increase their value by resolving adverse circumstances and settling third-party claims.
Collection of troubled debt. The creditor-debtor conflict is one of the most common examples. Success in recovering a troubled debt is not so much about obtaining a judgment of collection, but primarily in determining the most effective method of changing the debtor's paradigm: from an aggressive dismissal of any actions to repay the debt to an interested, effective interaction with the creditor.
Resolving conflicts of shareholders, project partners. Divergence in views on the development of the company, prioritisation of direction, identification of breach of trust, and emotional fatigue often lead to destabilisation in the company, blocking important decisions and, as a consequence, loss of work momentum, up to and including stoppage of activities. Efforts by experienced specialists can contribute to a constructive negotiation process and a balanced solution to the core of conflict.
Confrontation with external threats to the business. In a situation of administrative and legal pressure from regulators, regulatory agencies, law enforcement, companies interested in taking over or liquidating the organisation, the organisation experiences stress and uncertainty, which always reduces its capacity: banks delay credit lines, partners postpone new contracts, valuable employees may leave the organisation. Timely intervention by a strong partner on the organisation's side can eliminate excessive pressure and third-party claims.
Horizon Capital has accumulated experience in successfully resolving such and other similar situations.
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