Décideurs : Where does Scotto Partners stand in terms of Distressed M&A – Restructuring? What kind of client base do you advise in this area ?

Adrien Badelon: We have developed extensive expertise in Distressed M&A and we know all the players in this sector, particularly when it comes to restructuring procedures. From this point of view, our Distressed M&A work is similar to that of other firms. However, given our unique position in private equity and most importantly our independence in that we do not represent financial investors, we are very often approached by family shareholders, founders and managers who look to us for clear, unambiguous representation that supports their interests in situations that are frequently tense and where the stakes are pivotal.

Is there a connection between the Distressed M&A – Restructuring practice and the other areas of the firm ?

There are many connections. The clients themselves may be the first connection. Managers of companies undergoing an LBO are on the front line when cash-flow problems arise. Because of our extremely close relationship and the trust they have in us, we are often the first people outside the company they confide in when difficulties crop up. The subject matter itself calls for expertise in private equity, M&A and employment law. Given our recognized legal and tax expertise in private equity combined with our excellent knowledge of financial mechanisms, our involvement can be even more valuable when it comes to restructuring the company’s capital to reorganize the rights and seniority of the different stakeholders in the company. The same goes for M&A matters, when the disposal of a business is required to repay part of a bank debt or when cost reduction measures require individual or collective redundancies. These are just a few examples. .

How does your expertise in Distressed M&A – Restructuring differ from that of other firms?

Beyond our unique position in respect to financial investors, we have developed an in-depth understanding of financial terms and renowned negotiation capacity from our management package practice that enable us to negotiate directly with investors in the best interests of our clients.

Our familiarity with the financial component means we are able to adapt to serve our clients, seamlessly coordinating with their financial advisors, for example. It is a considerable asset that we want to promote and to develop extensively over the next few years.

What are the major matters that the firm has been involved in recently ? And you, in your career?

Some of our recent deals -in which I was involved- are when we advised Comexposium’s management on the restructuring of their management package in the context of a safeguard procedure (procédure de sauvegarde), or when Scotto Partners represented Corsair’s management on the restructuring of their management package in regard to a class action lawsuit. Scotto Partners also advised the management of Winoa both in respect of the implementation of the restructuring and the negotiation and implementation of a post restructuring MEP scheme.