We understand the mindset of distressed debt investors and are adept at advising on distressed investments: from early credit and documentary review through the life cycle of the investment, encompassing activist strategies (including litigation, if required) until exit.
We use our market and legal insight to create solutions which will be appealing to distressed investors and use this experience to our advantage when acting for corporates and other stakeholders.
We also represent secondary market participants in relation to the acquisition and disposal of debt products and insolvency-related claims using LMA documents or bespoke agreements either as part of a buy low, sell high strategy or to exercise control in a debtor’s insolvency.
In a changing financial and economic climate, companies, their directors or stakeholders facing or concerned about insolvency, encounter complex legal and commercial challenges.
We have a clear understanding of the areas of concern and potential liabilities and are able to provide reassuring and timely advice in what may be new and unknown situations.
We assess the situation, identify the risks and opportunities, and consider the merits of each option (or combination of options) for the various stakeholders in order to preserve value and maximise recoveries.
Distressed Equity Investments
MJ Hudson regularly advises investment institutions and companies on equity and quasi-equity investments (including convertibles and unsecured shareholder debt) and distressed acquisitions and disposals. This means we are perfectly placed to review the efficacy and operation of investment documentation, including complex equity waterfalls, the rights and trigger points attaching to preference and growth shares, structurally subordinated equity and the interplay of consents, pre-emptions and minority rights.
Our finance team’s deep knowledge of the secured lending and corporate bond markets also permits us to anticipate and prepare for the likely hotspots in any negotiation, distressed refinancing/reorganisation or workout.
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