MHR FUND MANAGEMENT LLC

MHR's advisory business involves managing client accounts on a fully discretionary basis. This means they have the authority to make investment decisions without specific client consent, including determining which securities to buy or sell, the amount of securities to buy or sell, the broker used for trades, and the commission rates. They adhere to the investment strategy and program outlined in each fund's private placement memorandum and operating agreement. Investors in MHR's client funds are required to complete subscription documents that confirm they have reviewed the relevant disclosure documents, which describe the scope of MHR's authority and the inability of investors to direct trading activities.

MHR's investment strategies focus on acquiring undervalued assets, including debt of companies experiencing financial distress or stress, and various undervalued assets. Their investments may be unsecured or subordinated, and they may also purchase distressed equity or equity related to prior distressed debt investments. The success of these strategies hinges on their ability to gather comprehensive information about each investment and accurately assess it throughout the holding period. They aim to fundamentally alter the risk/reward profile of an investment, utilizing a disciplined process based on fundamental valuation and comprehensive due diligence. Key elements of their approach include proprietary sourcing, rigorous non-traditional due diligence, focusing on inefficient markets, achieving control or significant influence, creating value through multiple entry points, and driving hands-on value creation.

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