Distressed Debt Swaps Are Mostly Costly Failures, HPS’s Puri Says

Troubled companies are failing to stay afloat by forcing losses on investors through debt swaps, proving such deals don’t work, according to HPS Investment Partners.

“There’s a lot of money and fees going out the door and there’s a lot of brain damage and creditors and recovery rates have been totally demolished and it didn’t work anyway,” Purnima Puri, head of liquid credit and a governing partner at HPS, said on the Bloomberg Intelligence Credit Edge podcast Thursday.