January 2014 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: Considerations when structuring distressed investments
FW moderates a discussion on distressed investments between Barry A. Chatz at Arnstein & Lehr LLP, Martin Gudgeon at Blackstone, Geoffrey Frankel at Huron Consulting Group, Partha Kar at Kirkland & Ellis International LLP, James Stonebridge at Norton Rose Fulbright, and Van Durrer at Skadden, Arps, Slate, Meagher & Flom LLP.
The use of pre-packs in bank restructuring and M&A
Skadden, Arps, Slate, Meagher & Flom LLP In response to the financial crisis, in October 2008 the US Treasury initiated the Capital Purchase Program of the Troubled Asset Relief Program whereby the government invested over $200bn in troubled financial institutions. Although those financial institutions have returned...
The Canadian distressed market: low interest, low leverage leads to low distress
Turnaround Management Association The Canadian economy, taken as a whole, has weathered the financial storm ravaging the global economy over the last several years. As a consequence, the Canadian distressed investing, distressed lending and distressed M&A markets have been only modestly more active than in...
Quick flip sales in insolvency proceedings
Davies Ward Phillips & Vineberg LLP The keys to a successful sale of distressed assets are time and cost. It is critical for the debtor’s stakeholders that the sale, including any associated process, is fast and the professional fees of the seller are minimised. In Canada, this can be achieved by conveying the...
Distressed M&A in Europe: what to look out for in 2014
Willkie Farr & Gallagher (UK) LLP A number of recent or proposed legal and regulatory changes will play a significant role in shaping the European distressed M&A market in 2014. In this article we highlight four such changes. The ECB’s Asset Quality Review...
Brown Rudnick LLP In this era of globalisation, the onset of insolvency for a corporate enterprise often results in the commencement of multiple proceedings in different countries, governed by distinct legal regimes. The participants in a distressed M&A transaction involving a multinational...
Hogan Lovells International LLP Distressed situations offer great M&A opportunities. Acquisitions of distressed companies before the commencement of insolvency proceedings or afterwards from the insolvency estate have unique characteristics. Before the commencement of insolvency proceedings, the acquisition...
Distressed property deals in Central and Eastern Europe: structures and legal implications
Ormai és Társai CMS Cameron McKenna LLP Distressed property transactions are still increasing in Central & Eastern Europe. There are several reasons for this but one of the main drivers is that the enforcement and insolvency regulations do not favour creditors’ right in an enforcement procedure or an insolvency...
Q&A: Valuing distressed assets
FW speaks with James Dimech-DeBono at Grant Thornton, Tom Greco at Hilco Valuation Services, Cindy Ma at Houlihan Lokey, Doug McPhee at KPMG, and Thomas B. Burton at Liquidity Services, about the valuation of distressed assets...
© Financier Worldwide
IN ASSOCIATION WITH
Arnstein & Lehr LLP
Grant Thornton UK LLP
Hilco Global
Huron Consulting Group
Kirkland & Ellis LLP
KPMG
Liquidity Services, Inc.
Skadden, Arps, Slate, Meagher & Flom LLP
Turnaround Management Association