Banks like JPMorgan Chase have found themselves the owners of a wide range of businesses, from distressed oil companies to hotels and newspapers, as a result of a recent wave of bankruptcies.
And that has created an opening for a new breed of restructuring expert, like Mark Dalton of the recently formed Halsey Lane Holdings, eager to help lenders turn around their unexpected acquisitions so they can sell them -- and make money.
For years, banks have ended up owning companies -- particularly in economic downturns -- because of bad loans and bankruptcies. But this time around, a broader variety of companies has failed, acquisitions of troubled companies are few, and the timing of the economic turnaround is uncertain.
Even companies that have restructured debt may present a liability for banks down the road. New bankruptcy regulations and an emphasis on financial restructurings due to high debt loads have shortened the time companies spend in bankruptcy court -- and they may not be operationally strong when they emerge.