Fiat/Peugeot Merger And Samson Resources M&A Demonstrate Post-Bankruptcy Events Can Drive Profitable Opportunities

SectorFinancial Markets
CountryMiddle east

Chrysler reorganized following bankruptcy in 2009, allowing it to be acquired by Fiat. Now that ... [+] company is about to merge with Peugeot creating the world's fourth largest automaker, showing how a company can evolve after distress and how subsequent catalytic events . (Xinhua/Joel Lerner via Getty Images) Xinhua News Agency/Getty Images Last year was a difficult one on so many levels—from the onset of the COVID-19 pandemic, through a rancorous national election and on through the end of the year.

It was an active one for distressed securities investors as many companies, particularly those already saddled with heavy debt loads, made moves to come to terms with creditors and, failing that, filing for Chapter 11 protection. A complex bankruptcy can take years to resolve, presenting many opportunities along the way to invest in distressed securities (before, during, and after distress). Events like spinoffs, mergers, and special dividends can help generate the final gains at the tail end of a distressed securities investment cycle. Samson Resources is coming to the end of a 10-year cycle dating to shortly after it was taken private by KKR in a $7.2 billion LBO in 2011 more...