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Distressed M&A

Overview

For strategic buyers and well capitalized investors, distressed targets can generate substantial economic value.

Varnum’s team of M&A and restructuring lawyers bring a wealth of experience to such matters, providing clients with the knowledge and business skills to effectively capitalize on these opportunities. From pre-LOI discussion to post-closing matters such as transition and integration, our lawyers help buyers navigate complex issues in an efficient and streamlined manner.

We have national experience in middle market merger, acquisition and sale transactions involving troubled companies and their assets. Our team offers significant skill and know-how related to distressed M&A deals, including structuring, negotiating and implementing bankruptcy, tax, creditors’ rights, securities, antitrust and financing components of these transactions. This experience includes a substantial number of transactions representing both financial and strategic buyers in acquisitions and representing troubled companies and owners of financially distressed or discounted assets to restructure and rehabilitate distressed businesses or liquidate assets.

For more information, please contact either your Varnum attorney, Seth Ashby at 616/336-6726 or swashby@varnumlaw.com, or Brendan Best at 313/481-7326 or bgbest@varnumlaw.com.

Experience

Experience

  • Representation of an automotive supplier in emerging from bankruptcy through an investment by a number of private equity funds ($125 million) and a subsequent preferred stock rights offering ($30 million) and refinancing ($200 million senior debt and $60 million junior debt).
  • Representation of a financially-distressed automotive and consumer product components manufacturer in the sale of assets to a strategic buyer ($11 million).
  • Representation of “stalking horse” strategic buyer in acquisition of distressed assets of automotive supplier from bankruptcy in §363 sale vis-à-vis secured lender’s partial assignment of credit-bid rights ($30 million).
  • Representation of strategic buyer in acquisition of distressed assets of automotive supplier prior to chapter 7 liquidation ($20 million).
  • Represented buyer in out-of-court acquisition of financially-distressed produce broker and apple packer ($20 million).
  • Liquidation of complex farming operation through series of Section 363 sales in Chapter 11 bankruptcy ($100 million).
  • Representation of a financially-distressed automotive product components manufacturer in the sale of assets to a strategic buyer ($15 million).
  • Representation of industry buyer on acquisition of assets of multiple distressed environmental remediation/services company group, including negotiating discounted buy-out of senior debt to defeat IRS claims and obtaining necessary waivers and emergency approvals from union organizations ($5 million).
  • Representation of industry buyer on acquisition of assets of distressed staffing company, including renegotiating key leases and customer contracts on emergency accelerated basis to maintain governmental approvals ($3 million).
  • Represented the Seller of a distressed Loan Portfolio of approximately 25 commercial loans ($3 million).
  • Represented environmental services company in the acquisition of eight municipal solid waste contracts and a transfer station operating agreement in bankruptcy ($2 million).

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