Joel H. Levitin and Richard A. Stieglitz Jr. Publish “The Coming Thaw for Distressed M&A: Opportunities and Best Practices for Lenders In Financing Distressed Business Acquisitions” in The Bankruptcy Strategist
As distressed M&A activity inevitably heats up, strategic buyers and equity sponsors that have sat on the sideline for an extended period of time will likely have expanding interest in purchasing viable, but over-leveraged, businesses that are being sold out of bankruptcy. The benefits of buying the business of a Chapter 11 debtor, such as obtaining a court order explicitly limiting assumed liabilities and containing other buyer protections, are relatively well known. In a new article for The Bankruptcy Strategist, partners Joel Levitin and Rich Stieglitz discuss the financing opportunities this activity will create for lenders, highlight the benefits of financing bankruptcy acquisitions and identify challenges and best practices to minimize risks.