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*The costs of restructurings are not added back in.
During this process there have been a series of restructurings.
Certainly, some listed companies have undertaken the kind of restructurings that ought to please shareholders.
Davis was the architect of restructurings and mergers of several energy companies over his career.
The firm has lost €30m ($38m) since 2004, and has been through a series of restructurings since 1997, the most recent of which was last year.
Hedge funds have even grabbed stakes in supermarket tabloids like The National Enquirer and Star Magazine, as those companies have undergone rounds of restructurings.
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As far as the association is concerned, there is no evidence that the ratio of bankruptcies to out-of-court restructurings has picked up since the credit derivatives market boomed.
Reported other income and expense was significantly adversely impacted in the first quarter 2012 primarily as a result of restructuring-related expenses discussed below, which were recognized in Devices & Services Other.
Experts say that out-of-court restructurings often work well in these situations.
The problem is most likely to manifest when derivatives trade on an exchange and transactions give blocking powers to small minorities, particularly out-of-bankruptcy restructurings and freezeouts.
And despite the group's conclusion, credit derivatives clearly do in practice sometimes gum things up when companies are trying to negotiate out-of-court restructurings.
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