January 2016
More from this Issue
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2016 Holds Opportunities for Resourceful Distressed Investors
Challenges present opportunities, and there will be many challenges in 2016 providing for creative distressed investment opportunities. The challenges range from rising interest rates and lower commodity prices to geopolitical risks and a global economic slowdown. Some of these challenges will have a greater impact on specific industries, like oil and gas, mining, and retail. […] -
Critical Considerations for Assessing, Integrating Distressed Companies
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 […] -
U.S. Energy Sector: Annus Horribilis, Part II
Everyone knew that 2015 would be a daunting year for the North American energy sector, but it arguably surpassed even the worst of expectations and closed out the year at the nadir of a tumultuous and largely unanticipated downturn. Informed opinions largely agree that 2016 holds few prospects for any significant rebound in energy prices […] -
Investors Face Heightened Risk, Uncertainty in Troubled Oil & Gas Industry
The U.S. oil and gas industry has continued to suffer substantial distress this year, with oil prices falling below $35 per barrel. Since late 2014, the industry has grappled with both severely depressed oil prices and burdensome debt levels. Global oil prices began trending lower in summer 2014 as a result of a confluence of […] -
Options for Bankruptcy Trade Claim Investing Fit Varying Risk Appetites
Buying bankruptcy trade claims can be attractive for distressed investors, while also providing an important and necessary potential source of liquidity to a wide range of creditors. Buying unsecured debt or “claims” against companies that are in bankruptcy, however, is risky no matter how an investor approaches it. The most significant risk for claim investors […] -
Lessons from Marblegate, Caesars for Distressed Investors
Following high-profile decisions issued by the U.S. District Court for the Southern District of New York, the Trust Indenture Act of 1939 has been garnering significant attention in recent months. 1 In addition, amendments to the Trust Indenture Act were introduced that, if adopted, would have applied retroactively to these cases. Specifically, these decisions and […] -
Practical Alternatives to a Bankruptcy Filing
Once a distressed business and its advisors have concluded that an out-of-court restructuring will not satisfactorily resolve a debtor’s financial difficulties, the company frequently begins planning to seek relief under the U.S. Bankruptcy Code. The code provides debtors and creditors with a detailed road map and important tools, including the automatic stay, free-and-clear asset sales, […] -
Report Suggests Decline in Midmarket Chapter 11s Has Stalled
After showing dramatic declines for the past four years, the Polsinelli|TrBK Chapter 11 Distress Research Index increased for three out of four quarters in 2015 and is at its highest point since June 2014. The index has been showing distress stabilizing at prerecession levels and now suggests that midmarket and large company distress may be […] -
January 2016 Newcomers
Alabama Heather Lee, Burr & Forman LLP Cathleen C. Moore, Bradley Arant Boult Cummings LLP Samuel Carlton Pierce, Baker Donelson Bearman Caldwell & Berkowitz PC Arizona David Matthews Austria Christian Grininger, Raiffeisen Landesbank OÖ AG California – Northern David Sherman, White Oak Global Advisors LLC Joshua Zazulia, Alvarez & Marsal California – Southern Scott F. […] -
Paying It Forward: A Smart Business Strategy
My first exposure to restructuring was as a boy growing up in a small town on the East Coast of Canada. My family had a number of businesses, but the cornerstone was a retail furniture chain located on an island in the Atlantic. The island was a 12-week delivery in a just-in-time inventory system. The […]