Special Situations M&A

KGI knows how to execute sale transactions quickly, leveragingits vast experience in distressed situations, understanding of transaction types and extensive network to remove roadblocks and drive transactions to a conclusion. KGI generally advises the Company on transaction structure and also markets the Company to prospective acquirors:

Transaction types include:

  • Chapter 11 Sales via Section 363: Section 363 of the Bankruptcy Code contains a provision allowing for the "free and clear" sale of a Company's assets, contingent upon meeting certain requirements specified in the Code. KGI has acted as advisor on scores of Section 363 sales.
  • ABC's (Assignment for the Benefit of Creditors): An alternative in California, as well as in selected other states, may be an Assignment for the Benefit of Creditors (ABC). This is similar to a bankruptcy, except it is a state versus a federal court action. An ABC is usually a much less expensive and quicker process. The transaction is effected utilizing an Assignee who is responsible for monetizing the assets of the estate and dealing with the creditor body.
  • Asset Dispositions: Part of the solution may involve a sale of selected assets to free up needed working capital or to facilitate the partial or complete repayment of existing debt. Our role is to assist the Receiver in identifying and selling these assets.
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