Creditor Advisor Selection

Not sure how many distressed investors frequent WSO, but just wanted to ask what considerations go into selecting a creditor advisor. Work product across top creditor shops seems similar / I'm sure relationships play a large part - but I was curious if there are any other factors or what the process looks like from the buy side.

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Depends on the deal size itself and how much we're willing to pay for fees, that itself creates a divide amongst the top RX shops or "other" advisors". You mentioned relationship, which is important. Other factors to consider include history in the space / industry / company (mainly Ch.22s). Sometimes we choose lawyers first and they would have their select list of advisors already. In reality, there are only so many "true" creditor-side shops...you would rarely find funds with Kirkland & Evercore (for example). 

 

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