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Distressed claims to continuity
Illustrative transaction structure showing how distressed claims can be converted into an operating continuity solution.
Portfolio acquisition, liability transfer, service conversion
A private lending partner sold Phoenix Credit Investments a portfolio of non-performing loans. One exposure was a construction company that was over-indebted but still operationally viable.
Phoenix acquired approximately 60% of the company's outstanding debt from multiple creditors at negotiated discounts ranging from $0.15 to $0.40 per dollar of face value.
Acquired claims were transferred away from the debtor onto other operating companies willing to accept the liabilities, removing the burden from the debtor's balance sheet and stabilizing its risk profile.
The debtor committed CAD 517,000 of contracted services to Phoenix, which were resold into an affiliate network — converting a distressed credit exposure into a service-backed recovery stream while providing the debtor with new revenue.
If the debtor faces future stress, Phoenix remains positioned to purchase additional claims and repeat the stabilization cycle, subject to viability assessment.
| Debt acquired | ~60% of stack |
| Purchase range | $0.15 – $0.40 / $1 |
| Service consideration | CAD 517,000 |
| Outcome | Continuity preserved |
Recoveries generated without relying on liquidation or enforcement.