Distressed M&A

Distressed M&A comprises transactions involving companies in financial difficulty, ranging from special situations through protective-shield and self-administration proceedings to transfers out of insolvency. The drivers are regularly liquidity shortages, covenant breaches or structural earnings problems.

Distressed processes are characterised by time pressure, limited availability of information, specific liability and clawback risks (e.g. Sections 129 et seq. of the German Insolvency Code (InsO)) as well as a particular stakeholder constellation (banks, suppliers, insolvency administrators).