Distressed Debt

As a result of the last few years’ overheated real estate market, foreclosures and short sales are on the rise. Eager to lend, banks, finance companies, and mortgage lenders had loosened underwriting standards, providing loans to many borrowers that were not qualified. Because of these lax lending standards, more and more borrowers, both residential and commercial, are unable to make their mortgage payments.

Under both regulatory and investor pressure, many banks and special servicers are beginning to dispose of their sub- and non-performing loans. The opportunity now exists to acquire these assets at levels we believe to be well below the true intrinsic value. Aegis seeks to capitalize on these opportunities by acquiring discounted whole loans, or pools of loans, working them out - either through restructuring or taking the collateral in compromise - and reselling/trading the assets at a premium to the acquisition price. Although the focus is on real estate-backed debt, Aegis will also acquire loans secured by accounts receivable, equipment and business assets, as well as unsecured senior debt.