When done well distressed investing can allow buyers to capture value or gain strategic footholds they could not afford in normal markets.

In a ‘prepack bankruptcy’ the debtor negotiates a plan, solicits votes, and obtains the necessary votes in favor of the plan before the case is filed.

A Chapter 11 plan is often described as the heart of a bankruptcy case. A confirmed plan determines what the business looks like when the case is over.

Not all property bought in a 363 sale is free and clear of liens or encumbrances, as is shown in the case of a golf course and car dealership sale.

The CRO may lead an organization through mildly difficult situations or shepherd truly distressed ones through much more drastic situations.

In 2025, Chapter 11 practice pivoted around the constraint of judicial power to grant broad non-debtor relief and the expansion of financial and procedural complexity.

In 2026, the modernization and standardization of alternatives to traditional Chapter 11 will continue to be most pronounced in UABCA, UCRERA, and Subchapter V.

A stressed company may be able to navigate back to clear waters. A distressed business is one that is arguably insolvent or on its way to becoming so.

Section 363 asset sales ensure transparency, fairness, and value maximization while protecting buyers from many risks associated with distressed assets.

Holders of administrative claims are entitled to priority payment so long as the claim was for goods or services that benefited the debtor’s estate.