The Coming Thaw for Distressed M&A: Opportunities and Best Practices for Lenders In Financing Distressed Business Acquisitions

This article focuses on the financing opportunities buying the business of a Chapter 11 debtor will create for lenders, highlights the benefits of financing bankruptcy acquisitions, and identifies some potential challenges and best practices to ensure that lenders minimize any risks and receive maximal protection for themselves.

6 minute read March 01, 2022 at 12:09 AM
By
Joel H. Levitin and Richard A. Stieglitz Jr.
The Coming Thaw for Distressed M&A: Opportunities and Best Practices for Lenders In Financing Distressed Business Acquisitions

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.

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