Restructuring partner hits out at distressed debt funds

The use of credit derivatives around distressed firms has come under attack from a leading London business consultant as creating "crazy" situations where some derivative holders "actively want the company to go under".

Phil Wallace, corporate recovery partner at KPMG, told Latham & Watkins' distressed debt conference that having investors in instruments such as credit default swaps (CDS) - which pay out on a 'credit event,' normally bond default - produced a "bizarre" situation where some

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