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From Boom to Doom: An Increase in De-SPACed Companies Seeking Chapter 11 Protection

September 05, 2023 (3 min read)

The boom in special purpose acquisition company (SPAC) IPOs in 2020 and 2021 led to hundreds of de-SPAC mergers, many of which are trading below the SPAC’s IPO price. Now, attention is shifting to the increasing number of de-SPAC companies seeking bankruptcy protection to restructure their obligations and preserve the values of their businesses as going concerns. Find out more about how distressed de-SPAC companies may be strategically using Chapter 11 as a rehabilitation option.    

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