Distressed Company Acquisitions
We acquire control of distressed companies and groups, assets and liabilities included, through an SPV. Then we either restructure the business or liquidate the assets in an orderly way, paying creditors and releasing shareholders from enforcement actions.
The structure
Dedicated SPV
A special purpose vehicle receives all the equity and runs the deal on a ring-fenced basis.
Joining every lawsuit
The SPV appears in every case, offers the assets as security and requests the removal of the shareholders.
Creditors first
Asset sales pay creditors in a defined waterfall, with the seller paid last.
Alignment
Part of the final result may return to the seller once every creditor has been paid.
Companies we acquire
- Groups with more assets than debt
- Assets without immediate liquidity
- Enforcement actions reaching the shareholders
- Shareholders in conflict or out of runway
An alternative
- No exposure of a collective court process
- No court-appointed administrator costs
- Asset sales at the market's pace
- Professional liquidation with a final accounting
How it works
- I
Due diligence
Labor, civil, commercial, tax and asset review, by legal entity.
- II
Term sheet
Price, assumption of liabilities and payment waterfall.
- III
Closing
Transfer of the equity to the SPV and handover of management.
- IV
Execution
Turnaround, asset sales and repayment, with full reporting.
Frequently asked questions
Does the seller receive anything?
The upfront price is usually nominal, plus the assumption of liabilities. The seller may share in the final result after creditors are paid.
Are the shareholders removed from the lawsuits?
The SPV requests their removal by offering security for the enforcement actions. Each court decides, and we prioritize the cases already reaching the shareholders.
Do you acquire groups with several entities?
Yes. We consolidate the entire group and wind down dormant entities to cut costs.