1. Contrarian Capital:
Identification of Fulcrum
Security Proves Critical to
Optimizing Profitability

2. With a proven track record of generating returns,
Contrarian Capital directs the seasoned judgment of its
executive and management team to deliver strong
results for the firm’s clients. The financial professionals
at Contrarian Capital focus on such high-income areas
as real estate, emerging markets, and distressed
securities.

3. Fulcrum security represents the highest priority in
relation to secured debt. According to investiture
agreement, fulcrum debt always receives first priority for
repayment in the event that a company goes out of
business. In fact, fulcrum debt necessitates the
liquidation or transfer of any company assets if a
company proves unable to meet debt service
obligations.

4. When investors consider bailing out a distressed
company to optimize its long-term potential for
profitability, they often purchase the fulcrum debt to
promote financial flexibility. By eliminating the owner of
the debt of absolute priority under the law, investors in
distressed securities enhance their control over
business ventures, fiscal activities, and operations. This
allows them to implement new processes, technologies,
and expansion plans that enable them to realize the
best possible outcome for corporate growth.