Practice

Distressed Acquisitions

Strategic Counsel for Distressed Acquisitions

Sheppard delivers multidisciplinary guidance to help buyers navigate the complexities of acquiring assets from troubled companies.

We counsel on bankruptcy transactions, assignments for the benefit of creditors, receiverships and UCC foreclosure sales, providing integrated guidance throughout.

Navigating Opportunity Amid Uncertainty

Purchasing assets in bankruptcy, receiverships, or other distressed situations offers unique business opportunities but comes with complex challenges.


Without skilled counsel, the intricate rules and circumstances can become a minefield. Sheppard’s agile, cross-functional team acts swiftly, seamlessly bringing together legal experts in bankruptcy, finance, corporate, tax, intellectual property, real estate and labor and employment to navigate these risks effectively. 

Our bankruptcy lawyers are adept tacticians and strategists who combine a pragmatic understanding of insolvency law with an ability to move quickly in high-pressure situations. They collaborate closely with colleagues who possess distinct expertise in mergers and acquisitions, corporate structures, intellectual property, labor matters, real estate, environmental compliance and tax—bringing a full spectrum of insight to each deal. 

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Experience

Representative Matters

The following is a representative list of some of the successful § 363 distressed asset sales in which our attorneys have represented strategic or financial buyers of assets out of a chapter 11 bankruptcy estate:

  • Represented Breakwater Management in acquiring assets of debtor Apex Linen Service, LLC for $24 million credit bid plus $650,000 cash (Delaware)
  • Represented American Iron & Steel in $27 million purchase of four paper mills from debtor Abitibibowater, Inc. (Delaware)
  • Represented Universal Protection Service, LLC (now Allied Universal) in acquiring security service contracts with malls and other commercial businesses from debtor IPC International Corp. for $25.4 million (Delaware)
  • Represented Modell’s Sporting Goods Online, Inc. (SPV of Retail Ecommerce Ventures) in purchase of intellectual property from debtor Modell’s Sporting Goods for $3,460,000 (New Jersey)
  • Represented Brands Holdings in acquisition of intellectual property from debtor No Fear Retail Stores, Inc. for $9.8 million (SD California)
  • Represented TL Capital in $20 million purchase of intellectual property of Pier One Imports (ED Virginia)
  • Represented Stein Mart Online Inc. (SPV of Retail Ecommerce Ventures) in purchase of debtor Stein Mart’s intellectual property for $6 million (MD Florida)
  • Represented SLT Lending SPV, Inc. in purchase of $90 million of inventory, leases, FF&E, and receivables of debtor Sur La Table (New Jersey)  
  • Represented Revere Plastics Systems, LLC in $2.1+ million purchase of machinery, equipment and related items from debtor Techniplas, LLC and affiliates (Delaware)
  • Represented Capital Sports Properties in acquisition of Ottawa Senators NHL team and Corel Centre Stadium Complex from debtor Covanta Energy for $127.5 million (SD New York; Canada)
  • Represented Ashley Furniture Inc. in purchase of numerous store leases from debtor PLVTZ Inc. (Levitz II) for $5 million (SD New York)
  • Represented Canal+ in acquisition of assets of debtor Carolco Pictures for $58 million (Delaware)
  • Represented Jomed Inc. in $100 million acquisition of Memorex from Netherlands insolvency (NL)
  • Represented Marathon Oil in $270 million acquisition from debtor Enron Corp. of LNG gasification facility and two LNG tankers (SD New York)
  • Represented Consolidated Precision Products Corp. in $1.8 million purchase of complex aluminum and magnesium alloy castings for aerospace industry from Aerocast International Inc. (Arizona)
  • Represented TG Valentine, LLC in $8 million purchase of infant bedding and related accessories and intellectual property of Kid Brands, Inc. and related companies (New Jersey)
  • Represented Windstar Hong Kong Limited in $58 million acquisition of assets of debtor PSINet Inc.’s Hong Kong assets (Delaware)
  • Represented Mexican family office in acquisition of assets of debtor Loewen (US)
  • Represented Bluways USA Inc. in acquisition of assets of debtor ISE Corporation for $2,660,000 combined cash and other consideration (SD California)