Against the Rules with Michael Lewis On Background: Who Buys Distressed Assets?
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Jul 11, 2023 AI Snips
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The Twinkie Challenge
- Andy Mitchell's first distressed asset target was Interstate Bakeries, maker of Wonder Bread and Twinkies.
- The company faced challenges due to childhood obesity concerns and high distribution costs from unionized bakeries.
Bankruptcy as a Tool
- Buying a distressed company outside of bankruptcy can expose you to all the legacy liabilities.
- Bankruptcy can act as a tool to separate good assets from bad and resolve claims.
Navigating the Weinstein Bankruptcy
- Mitchell aimed to buy the Weinstein Company's valuable movie library, believing the negative press was overblown.
- He encountered resistance, with 96 parties objecting to his initial bid, including Meryl Streep.
