The current economic climate has hit certain industries, such as retail, travel, entertainment and commercial real estate, particularly hard. Struggling companies may be looking for access to short-term capital or even long-term partnerships. Thus, the distress in which those companies find themselves presents opportunities for funds interested in investing in distressed debt. This article summarizes the key issues discussed in a seminar by BakerHostetler on distressed debt investments, including types and strategies of distressed investments; key legal issues relating to those investments; issues investors should consider when assessing distressed opportunities; and two relevant court cases. For more on distressed debt, see “Hedge Fund Managers Trading Distressed Debt Must Understand LMA Standard Form Documentation” (Feb. 25, 2016).