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Buying a Bankrupt or Insolvent Business

Buy a business in Canada

Acquiring the business or assets of a bankrupt or insolvent entity involves important business and legal considerations. With few exceptions, distressed assets are sold on an “as is, where is” basis without the benefit of industry standard representations and warranties.

In addition, both the sale process and approval of the distressed asset sale are typically subject to various court orders. The successful bidder for an insolvent company’s assets not only must comply with such orders but also obtains the benefit of such orders.

Buy a business in Canada

The insolvency and restructuring group at Fasken has extensive experience working with domestic and foreign companies and lenders to acquire distressed assets in all jurisdictions of Canada.

This includes acting for secured lenders seeking to “credit bid” and acquire distressed assets as repayment for outstanding debt. Our team is also frequently engaged by accounting and trustee firms, including major international firms, to assist with the sale of distressed assets. As a result we have a thorough understanding of the distressed asset sale process and have built a solid reputation amongst the industry professionals typically involved in these sales.

While many aspects of distressed asset sales are consistent across Canada, regional and industry-specific differences can make the help of local counsel invaluable. Our lawyers specialize in all major industries, allowing us to provide practical, timely and industry-specific advice to clients interested in acquiring distressed assets.

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