Distressed M&A and investing

March 2013  |  SPECIAL REPORT: DISTRESSED M&A AND INVESTING

Financier Worldwide Magazine

March 2013 Issue

March 2013 Issue


Distressed investment opportunities exist in a broad range of sectors and geographies, as a result of ongoing turmoil in the financial markets. Cash-rich companies and investment funds have a wide range of acquisition options at reduced valuations, particularly in the energy, shipping, food, construction, retail and real estate markets. The current climate has brought added complexity to distressed M&A. Bankruptcy auctions, Section 363 asset sales and traditional reorganisations have all been effected, adding to an already uncertain process. Despite the opportunities, distressed M&A funding requires an appetite for risk that banks are no longer showing, and given the lower returns resulting from competition in all segments of the marketplace, this is understandable. The financing of distressed M&A, however, has not completely dried up, though financiers tend to be non-traditional lenders.

FORUM: Outlook for distressed M&A and investing in 2013

FW moderates a discussion about distressed M&A and investing in 2013 between Jay J. Rittberg at AIG, Partha Kar at Kirkland & Ellis International LLP, and Daniel F. Fiorillo at Otterbourg, Steindler, Houston & Rosen...

The changing face of asset sales in Chapter 11

Otterbourg, Steindler, Houston & Rosen, P.C. Only a handful of sections contained in the United States Bankruptcy Code are so quintessential to the fabric of the reorganisation process that even a slight change in either their interpretation or implementation can directly affect the outcome of almost every Chapter 11 case. Two such...

Indemnification solutions for distressed deals 

AIG In M&A transactions, buyers and sellers must agree on which party should bear the risk of unexpected loss in the transferred business after the deal closes. A seller will typically make representations about the business being sold and a buyer will typically require some...

Treatment of make-whole provisions in AMR Corp. Chapter 11 case raises new concerns for lenders

Skadden, Arps, Slate, Meagher & Flom LLP Make-whole premiums are intended to compensate financiers, typically bondholders under an indenture, for the loss of future interest payments in situations where, due to declining market interest rates, a debtor elects to repay its debt obligations early. Without such protection,...

Recent lessons on management compensation at various stages of the Chapter 11 process

Kirkland & Ellis LLP Setting compensation for senior management can be among the most contentious issues facing companies reorganising under Chapter 11 of the US Bankruptcy Code. Corporate debtors argue that such compensation—often in the form of base salary, bonuses, or stock of the reorganised company –...

Blowing in the wind

Siguler Guff & Company, L.P. The global financial crisis of 2008 (the ‘GFC’) impacted financial market theory and continues to challenge longstanding beliefs. The halcyon assumptions of allocation models and the benefits of diversification across asset classes came under direct scrutiny as correlations broke down and...

Zombies need not be zombies

Bryan Mansell & Tilley LLP Much publicity has been given to so-called zombie companies; companies in ‘suspended animation’ struggling to stay alive in a difficult market place, over leveraged, with limited liquidity and with no access to finance, their existence dependent on continuing low interest rates and...

The pari passu clause as applied in Argentina sovereign bonds litigation

Marval, O’Farrell & Mairal In a recent case US Courts gave a broad interpretation to the ‘pari passu’ clause which requires 100 percent of the principal and interest of defaulted Argentine sovereign bonds held by plaintiffs to be paid concurrently or in advance of amounts paid by Argentina under the exchange bonds...


IN ASSOCIATION WITH

American International Group, Inc.

Otterbourg, Steindler, Houston & Rosen, P.C.

Skadden, Arps, Slate, Meagher & Flom LLP


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