Distressed Investing

Pillsbury has significant experience representing domestic and international investors in troubled companies. The firm represents financial institutions, including commercial banks, investment banks, and hedge funds located in the U.S., Europe, Asia, and Latin America, that invest and trade in distressed assets such as bank loans, trade claims and swap claims against, and securities and other financial instruments issued by, companies in financial distress.

Our team delivers value through each stage of a transaction, from initial credit and capital structure analysis, review of relevant debt instruments, and structuring of the transaction, through negotiation of deal-specific transaction documents and closing. We also monitor bankruptcy and general market developments and industry practice, always with a particular focus on how our clients and their investments and trading strategies might be affected.

Our particular experience includes:

• Purchase and sale of bank loans and loan portfolios
• Purchase and sale of trade claims, such as vendor receivables and swap claims under ISDA documentation
• Receivable financing transactions and programs, such as vendor put/standby arrangements
• Structuring entities to buy, hold, and enforce distressed assets
• Claims reconciliation, negotiation, and settlement
• Preparation and negotiation of all transaction documentation, including confidentiality agreements, trade confirmations and term sheets, and par and distressed purchase and sale agreements (including form documents and customized agreements)

Market Knowledge
We have a dedicated team of lawyers who understand the market and execute transactions efficiently and cost-effectively. Our lawyers are active members of leading industry groups such as the Loan Syndications and Trading Association (LSTA) and the Loan Market Association (LMA). Pillsbury’s knowledge of the distressed investing and trading market is supplemented by the firm’s well-regarded transactional and litigation practices, including lending and finance, bankruptcy, restructuring, derivatives and structured products, private equity, investment funds, securities, tax, and ERISA.

We also advise clients in connection with potential investments in distressed companies. This work includes bankruptcy counseling, analysis of claims, indentures, credit documents, and intercreditor arrangements, as well as implementation of trading, investing, and distressed lending strategies. Occasionally, distressed investors will call us because they intend to play a prominent role in the restructuring or bankruptcy process.

At all times, our focus is on adding value and working tirelessly to deliver timely results, thoughtful analysis, and practical solutions.