Distressed M&A: case studies in realising value

Author: | Published: 26 Nov 2009

Oilexco and JJB Sports negotiated company voluntary agreements; IMO Carwash won court approval for its controversial scheme of arrangement; Nortel opted for a US-style stalking-horse process across multiple jurisdictions. All companies are still operating and have managed to realise some of the value of their existing assets.

As panellists in IFLR’s latest web seminar on distressed M&A, which was held in association with Herbert Smith, agreed, examples from the market over the past 12 months offer important lessons to companies and the firms that advise them, on how to recover the most value from a potential administration.

“If lenders won’t provide a company with the cash it needs to keep going, it has to find another way,” said Kevin Haywood, a director at Ernst & Young’s restructuring practice. “More often than not the lenders are banging on the door telling the company to sell something in order...