We support investment in distressed assets
We deal with distressed assets, which include assets such as businesses, debt instruments, real estate or claims. Because of their complex financial, legal or litigation situation, these resources generate significant risks. Examples include businesses (shares, stocks, organised parts of businesses or entire entities), receivables that do not show interest or instalment payments, real estate with ownership or enforcement problems, and claims whose pursuit requires advanced legal support.
These assets are sometimes problematic due to loss of liquidity, lack of capital for modernisation or investment, litigation blockage, unregulated legal status, ownership conflicts, regulations preventing corrective actions, or hostile takeover attempts.
They are burdened by economic risks (e.g. loss of market), financial risks (continuous contributions to the business), legal risks (liability of board members), tax risks (personal liability for liabilities), reputational risks (loss of trust of counterparties) and image risks (negative brand associations).
Although their value may be significantly impaired, these assets have the potential to recover in the long term if we apply appropriate recovery and investment measures.
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Ewa
BłaszczykClaims and security interests in real estate
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dr Patryk
FilipiakRestructuring, bankruptcies and reorganisations
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Piotr
TurskiDistressed assets and receivables transactions
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Natalia
PydyńskaProperty audits
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Michał
BabiczCriminal risks in transactions, restructuring and enforcement
Investment stages
We analyse and diagnose the risk factors associated with distressed assets. We focus on economic, legal or reputational issues. On this basis, we develop an action strategy to regularise the assets, stabilise their value and prepare them for further investment activities. We are planning an acquisition path.
Ewa
Błaszczyk
dr Patryk
Filipiak
Piotr
Turski
Natalia
Pydyńska
Michał
Babicz
We design financing structures, negotiate terms and conditions with financial institutions and tailor capital to the needs of the investment.
Piotr
Turski
We carry out effective acquisitions of distressed assets, identifying those with the potential for long-term profit. We plan the investment strategy, stabilise the legal and tax situation, and integrate assets into markets and investments. We work with investors, funds and banks to ensure that the investment potential of these assets is effectively financed, acquired and realised.
Ewa
Błaszczyk
Piotr
Turski
Natalia
Pydyńska
We resolve complex legal issues concerning assets – we organize and stabilize the legal and tax situation. We clarify ownership ambiguities, assist with litigation, remove mortgage encumbrances and settle legal arrears to enable the effective management or sale of these assets.
Ewa
Błaszczyk
Piotr
Turski
Natalia
Pydyńska
We comprehensively prepare distressed assets for sale or further investment and optimise their value to attract the interest of potential investors or buyers.
Ewa
Błaszczyk
dr Patryk
Filipiak
Piotr
Turski
Natalia
Pydyńska
Michał
Babicz
We support investment in distressed assets
Distressed assets
We deal with distressed assets, which include assets such as businesses, debt instruments, real estate or claims. Because of their complex financial, legal or litigation situation, these resources generate significant risks. Examples include businesses (shares, stocks, organised parts of businesses or entire entities), receivables that do not show interest or instalment payments, real estate with ownership or enforcement problems, and claims whose pursuit requires advanced legal support.
These assets are sometimes problematic due to loss of liquidity, lack of capital for modernisation or investment, litigation blockage, unregulated legal status, ownership conflicts, regulations preventing corrective actions, or hostile takeover attempts.
They are burdened by economic risks (e.g. loss of market), financial risks (continuous contributions to the business), legal risks (liability of board members), tax risks (personal liability for liabilities), reputational risks (loss of trust of counterparties) and image risks (negative brand associations).
Although their value may be significantly impaired, these assets have the potential to recover in the long term if we apply appropriate recovery and investment measures.
1. Risks identification
We analyse and diagnose the risk factors associated with distressed assets. We focus on economic, legal or reputational issues. On this basis, we develop an action strategy to regularise the assets, stabilise their value and prepare them for further investment activities. We are planning an acquisition path.
2. Acquisition of financing
We design financing structures, negotiate terms and conditions with financial institutions and tailor capital to the needs of the investment.
3. Effective acquisition
We carry out effective acquisitions of distressed assets, identifying those with the potential for long-term profit. We plan the investment strategy, stabilise the legal and tax situation, and integrate assets into markets and investments. We work with investors, funds and banks to ensure that the investment potential of these assets is effectively financed, acquired and realised.
4. Regulation of legal status
We resolve complex legal issues concerning assets – we organize and stabilize the legal and tax situation. We clarify ownership ambiguities, assist with litigation, remove mortgage encumbrances and settle legal arrears to enable the effective management or sale of these assets.
5. Preparation for investment/resale
We comprehensively prepare distressed assets for sale or further investment and optimise their value to attract the interest of potential investors or buyers.
Goal
- Assistance in understanding and managing the risks associated with distressed assets.
- Assistance in finding and obtaining appropriate sources of funding for investments in distressed assets.
- Assistance in the process of purchasing distressed assets, ensuring that transactions are carried out efficiently and safely.
- Assistance in resolving legal issues relating to distressed assets to ensure their correct legal status.
- Advising on preparing assets for further investment or resale to maximise returns.
For whom
- Individuals and companies who are prepared to invest
in risky but potentially highly profitable assets. - Companies looking to dispose of or acquire distressed assets for restructuring purposes.
- Institutions that have distressed assets
in their portfolios and want to manage or dispose of them effectively. - Professionals involved in advising
on distressed assets for their clients. - Funds that specialise in investing in distressed assets and need expert support.
Case study
Audits of debt portfolios in commercial banks
We conducted numerous audits of several hundred bespoke receivables at over a dozen commercial banks, including due diligence on collateral, litigation and enforcement proceedings (enforcement, insolvency), preparation of reports and acquisition recommendations.
Entity in the FMCG sector – nationwide supermarket chain
Participation in the investor search process and in the acquisition of a group of companies by a foreign investor. The subject of the transaction was a nationwide supermarket chain with nearly 150 locations.
Acquisition of a participating interest of a Polish commercial bank in the structured – syndicated credit financing of a capital group of a global manufacturer in the bedding / furniture industry
Legal support for a TFI representing a debt fund in the acquisition of a Polish commercial bank’s participation interest in a structured – syndicated group loan financing of a global manufacturer in the bedding / furniture industry together with the related acquisition of a PIK Note (the financing itself was part of a broader LBO made by a leading US PE fund). The loan financing was arranged by foreign banks under English law while the PIK Notes were governed by Luxembourg law. Support included a full audit of financing documentation and restructuring of financing (under English law).