Mergers and acquistions specialists move to bankruptcy court

With credit markets frozen, what do merger and acquisitions specialists do? Well, they hang out in bankruptcy court looking for deals.

Debt is turning into the new equity, according to a story in today's Wall Street Journal. Companies are moving in and out of bankruptcy court quickly by offering their debt holders equity in the company, or by finding investors who will put up enough cash to buy assets at liquidation prices. The new company then emerges debt free.