Simplon International Limited is designed to allow offshore entities to invest in distressed debt in the United States. The fund has been in existence since 1989 and concentrates on situations with market capitalizations of under $500 million where pricing inefficiencies are most likely to occur. Generally the strategy is to acquire bonds, bank debt or trade claims at a discount to face value and hold them until a Chapter 11 plan of reorganization (or other financial restructuring) can be completed to deleverage the balance sheet of an otherwise healthy business. The focus is on the most senior claims in a company’s capital structure to limit downside risk. The fund never uses margin loans or other leverage, further limiting risk. The fund does not seek control positions in any of their investments but, when needed, the principals may serve on creditors’ committees or corporate boards.