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Distressed M&A
Transforming Financial Distress Into Strategic Opportunity
In times of economic uncertainty, financially distressed companies and troubled assets often present unique opportunities for transformation. Successful execution of Distressed M&A transactions, however, demands legal precision, commercial agility, and a deep understanding of insolvency, restructuring, and cross-border finance.
At SJKP LLP, our Insolvency & Restructuring team has been recognized globally by Financial Times, M&A Advisor, Turnaround Management Association, International Financial Law Review, and Latin Lawyer for its leadership in complex and innovative distressed transactions. We have structured and closed some of the most significant and precedent-setting deals that revived failing ventures, preserved enterprise value, and positioned acquirers for long-term success.
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1. The Distressed M&A Environment
Navigating Opportunity Amid Financial Turbulence
Distressed M&A transactions require more than traditional dealmaking—they demand crisis management, financial insight, and legal resilience. The intersection of insolvency law and corporate strategy creates both opportunity and risk for all parties involved, from debtors and creditors to investors and strategic buyers.
SJKP LLP advises clients through every stage of the distressed M&A lifecycle, including bankruptcy auctions, Section 363 sales, plan sponsorships, debt-for-equity swaps, and out-of-court restructurings. Our experience spans industries from manufacturing and retail to energy, real estate, and technology.
Key Market Dynamics
- - Economic Volatility: Rising interest rates and liquidity challenges driving restructurings.
- Bankruptcy Auctions: Section 363 sales creating rapid acquisition opportunities.
- Cross-Border Distress: Global market interdependencies impacting asset recovery.
- Private Equity and Hedge Fund Activity: Opportunistic investment in distressed portfolios.
- Regulatory Scrutiny: Increasing oversight in antitrust, CFIUS, and competition regimes.
We help clients identify value amid instability—turning distress into a platform for strategic growth.
2. Acquisition and Sale of Distressed Assets
Structuring Transactions Inside and Outside of Bankruptcy
SJKP LLP represents clients in acquisitions and divestitures of distressed companies and assets both in-court and out-of-court. We guide buyers, sellers, and financial sponsors through Section 363 transactions, Chapter 11 plan sponsorships, and prepackaged restructurings, ensuring speed, certainty, and value preservation.
Our lawyers bring deep familiarity with court-supervised sale processes, bid procedures, and creditor negotiations, allowing clients to minimize risks associated with successor liability, fraudulent transfer claims, and executory contract assumptions.
Distressed M&A Transaction Services
- - Structuring and executing Section 363 asset sales and stalking-horse bids.
- Advising plan sponsors and DIP lenders on Chapter 11 acquisitions.
- Negotiating asset purchase agreements (APAs) and bid protections.
- Conducting out-of-court debt restructurings and distressed divestitures.
- Managing auction participation and bankruptcy court approvals.
We balance speed with diligence, ensuring that every distressed transaction achieves commercial objectives while mitigating legal exposure.
3. Representation Across Stakeholders
Advising Debtors, Creditors, and Investors in Complex Transactions
Distressed M&A is inherently multi-party. Each transaction involves overlapping priorities—from creditors seeking recovery to investors seeking opportunity. SJKP LLP’s multidisciplinary team represents debtors, lenders, creditors, private equity sponsors, hedge funds, and strategic acquirers, providing coordinated advice that aligns financial, operational, and legal interests.
We evaluate distressed investment opportunities, manage restructuring negotiations, and structure transactions that reconcile divergent stakeholder goals while preserving value.
Stakeholder Representation Capabilities
- - Advising debtors and boards on fiduciary duties and restructuring alternatives.
- Representing secured and unsecured creditors in recovery-driven transactions.
- Assisting private equity and hedge funds in distressed asset acquisitions.
- Guiding lenders and noteholders through enforcement and restructuring processes.
- Counseling strategic buyers on liability, contract assumption, and integration.
Our team bridges the gap between financial opportunity and legal constraint, helping clients close deals that others deem impossible.
4. Transaction Structuring and Risk Management
Balancing Speed, Value, and Compliance in Crisis Transactions
Distressed M&A often occurs under compressed timelines and heightened scrutiny. SJKP LLP helps clients manage valuation uncertainty, due diligence constraints, and regulatory complexity, ensuring transactions are both defensible and strategic.
Our attorneys collaborate with tax, antitrust, and compliance specialists to structure deals that achieve optimal outcomes. We assess potential successor liability, fraudulent conveyance, and avoidance risks and implement mechanisms to safeguard future profitability.
Structuring and Risk Advisory
- - Designing tax-advantaged acquisition and restructuring structures.
- Managing fraudulent transfer, preference, and avoidance exposure.
- Advising on antitrust, competition, and CFIUS regulatory clearance.
- Conducting accelerated due diligence on distressed targets.
- Implementing liability mitigation and indemnification strategies.
We combine legal foresight with transactional agility to ensure that distressed acquisitions deliver durable value.
5. Cross-Border Distressed M&A
Global Coordination for Multijurisdictional Transactions
In today’s interconnected economy, financial distress often crosses borders. SJKP LLP’s global network enables clients to pursue distressed investment opportunities and asset recoveries in multiple jurisdictions, including the U.S., U.K., E.U., Latin America, and Asia.
We advise on Chapter 15 recognition proceedings, foreign insolvency coordination, and cross-border enforcement, aligning restructuring and acquisition strategies with local legal and regulatory frameworks.
International Transaction Capabilities
- - Coordinating Chapter 15 recognition and foreign insolvency processes.
- Advising on cross-border asset purchases and debt restructurings.
- Managing multi-jurisdictional creditor and court negotiations.
- Addressing exchange controls, tax treaties, and regulatory approvals.
- Structuring joint ventures and co-investments in international distress.
Our cross-border expertise ensures seamless execution and compliance in an increasingly global distressed M&A environment.
6. Post-Acquisition Integration and Compliance
Stabilizing Operations and Protecting Value After the Transaction
Closing a distressed M&A deal is only the beginning. Post-acquisition success requires stabilization of operations, retention of key personnel, and alignment with legal and regulatory obligations. SJKP LLP assists clients with corporate governance, executive compensation, employee benefits, environmental compliance, and contractual integration following distressed acquisitions.
We help buyers implement operational safeguards and compliance programs that ensure newly acquired entities thrive under new ownership.
Post-Closing Advisory
- Developing integration frameworks for acquired distressed entities.
- - Addressing employment, labor, and benefits transition issues.
- Ensuring compliance with environmental and data regulations.
- Managing legacy liabilities and indemnity enforcement.
- Advising on exit strategies and divestitures of non-core assets.
We deliver practical solutions to protect investment value long after the transaction closes.
7. Litigation and Dispute Resolution
Protecting Client Interests in High-Stakes Bankruptcy and M&A Litigation
Distressed M&A often involves contentious disputes among creditors, investors, and regulators. SJKP LLP’s litigation team represents clients in bankruptcy adversary proceedings, fiduciary duty claims, and transactional disputes arising from distressed sales.
Our attorneys combine courtroom advocacy with negotiation experience, resolving conflicts efficiently while protecting financial recoveries and corporate reputations.
Litigation and Enforcement Services
- - Defending and prosecuting fraudulent transfer and preference actions.
- Representing clients in bid, auction, and sale order disputes.
- Litigating breach of fiduciary duty and contract performance claims.
- Resolving valuation and indemnity disagreements post-closing.
- Managing creditor committee and shareholder disputes.
- We provide decisive litigation strategies that safeguard client interests across all phases of the distressed transaction process.
8. Why Choose SJKP LLP for Distressed M&A Counsel
Restructuring Expertise. Transactional Precision. Strategic Foresight.
Distressed M&A is not simply a transaction—it is a turning point. At SJKP LLP, we bring together insolvency, corporate, finance, tax, and litigation capabilities to guide clients through complex restructurings and distressed acquisitions. Our attorneys have advised on landmark deals that earned global recognition for their creativity and impact.
Whether acquiring assets through bankruptcy sales, structuring out-of-court workouts, or defending against creditor litigation, we provide the insight and discipline necessary to execute with confidence. Our approach is pragmatic, proactive, and client-centered—focused on turning distress into opportunity.
At SJKP LLP, we help clients restructure, acquire, and succeed where others see only risk.
The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
Certain informational content on this website may utilize technology-assisted drafting tools and is subject to attorney review.
