WiseAlpha is required to pass on all economics of its underlying bonds. In the event of Financial restructurings (namely those which include debt for equity swaps), users may receive Fractional Equity.
WiseAlpha may receive debt or equity or both in the restructuring. WiseAlpha does not control the form the restructuring takes but ensures its clients receive the exact economic terms of the restructuring.
Fractional Equity positions are treated in accordance with the Fractional Bond agreement, with the underlying equity being held by WiseAlpha Technologies Limited, the Fractional Bond issuer.
Equity from such restructurings is commonly private (i.e. not listed on a public exchange).
Wisealpha does not provide a secondary market for equity instruments, and we do not offer share/equity investment as a standalone product. As such, equity from restructurings will remain untradeable until an exit event occurs - a sale or partial sale of the business.
Exits typically take many years, and are not guaranteed given the issuer has to recover and its business remain viable. Exit terms may or may not be beneficial to the private equity holder.
The terms of any restructuring are set by the relevant bondholder group on a representative basis. It is the larger, and most senior, bondholders who will generally set the majority of the terms. This is because they generally have the majority of voting rights.
WiseAlpha is generally a comparatively small bondholder and will vote in the best interests of its clients in order to achieve the best outcome.
For more details please visit: https://www.wisealpha.com/investor-agreements & https://www.wisealpha.com/risk-statement