The law surrounding distressed acquisitions has been evolving rapidly for the past decade. The loan-to-own strategy, in which a would-be buyer purchases existing debt at a discount as a tool to achieve ownership of the target company, has been one of the favored strategies of value investors. During the same period, it has been the subject of significant scrutiny. 

In the past several years, a number of issues regarding loan-to-own strategies have been resolved by the courts, and new decisions provide fresh guidance for distressed buyers.1 Accordingly, the time for an...

It has become increasingly common for foreign companies subject to pending insolvency proceedings abroad to utilize Chapter 15 of the U.S. Bankruptcy Code to achieve their global restructuring goals. However, despite the growing number of Chapter 15 cases, uncertainty remains as to the role of Chapter 15 when the rights of creditors vary in different jurisdictions.

A series of recent rulings by Judge John K. Sherwood of the U.S. Bankruptcy Court for the District of New Jersey in the Chapter 15 case of Hanjin Shipping Co. (Case No. 16-27041) is indicative of the challenges...

Investing in distressed assets can be a highly profitable modus operandi. However, whether distressed investors realize value can be predicated on a variety of factors, including transaction price, assessment of operations and achievability of the business plan, management execution, capital markets, and exit opportunities. Additionally, strategic buyers or existing platform companies must also take into consideration challenges that include achievability of synergies and growth expectations, cultural implications, and integration execution.

Distressed companies represent complex...