Randall Cecola founded and served as CEO of The Darwin Technology group. Having purchased Triumph Packaging Group, a provider of paper products to the food and cosmetic industries, at public auction, Randall Cecola currently serves as the group’s CEO. Randy Cecola quickly turned the company, which had a history of bankruptcy and financial difficulties, into a profitable business.
As hedge fund investors look to distressed companies and businesses, the automotive capital of the world suddenly offers new value. Detroit is seen by specialized, high-risk hedge funds as an alternative to distressed businesses: a distressed city. As banks and other hedge funds continue to transform failing corporations into profitable ventures, the field of distressed investments grows narrower every day.
Now, however, failing governments across the country are being viewed as potential investments, with payouts big enough to encourage hundreds of millions of dollars in up-front capital. Recently Jefferson County, Alabama, saw a $600 million debt wiped away by a private investment firm. Detroit’s long-term debt, though, is on another level, at close to $9 billion. If the city eventually files for bankruptcy, it will be viewed by hedge funds as potentially the biggest payout in the history of distressed investments. Once the fifth largest city in America, Detroit has a population of less than 800,000 and, in some areas, does not have the basic resources available to fix broken streetlights.