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Skadden Discusses De-SPACed Companies Seeking Chapter 11 Protection

Reynolds Holding

Eleven de-SPACed companies that formed between 2020 and 2022, and one from 2018, found themselves in this position and have already sought Chapter 11 relief to address their challenges. But these transactions demonstrate that troubled de-SPACed companies may retain significant going-concern value even in today’s challenging environment.

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Breaking Down the Delaware Supreme Court’s DFC Global Decision**

Appraisal Rights

In addition, the Supreme Court disagreed with chancery that a financial buyer – such as Lone Star, the private equity buyer here – would perform a valuation analysis that was necessarily lower than that done by a strategic buyer. The Supreme Court Rejected the Cross-Appeal and Refused to Disregard the Comparable Companies Analysis.