Distressed Credit and Special Situations

GrayStreet Partners provides structured capital solutions for complex, time-sensitive opportunities, ranging from Debtor-In-Possession (DIP) financing to high-stakes litigation.

Distressed Debt

We finance and acquire distressed debt opportunities to create value through restructuring, recapitalization, and strategic resolution.

DIP Loans (Debtor in Possession Financing)

We provide DIP financing to companies in bankruptcy, supplying critical liquidity to support operations and successful reorganizations.

Litigation

We fund commercial litigation and legal claims, helping clients pursue meritorious cases while preserving capital and reducing financial risk.

Insurance Claims

We advance capital against insurance claims, improving cash flow and enabling businesses to move forward while claims are being resolved.

For instances where traditional capital is constrained, yet the underlying value remains strong. We deploy principal capital into opportunities defined by asymmetric risk, focusing on protected downsides with structure-driven upside.

Litigation & Legal Special Situations Financing Summary

What We Do

We deploy principal capital into high-stakes litigation with binary outcomes and structurally advantaged recoveries, targeting situations where capital and underwriting drive results.

We are not volume underwriters. We pursue situations where legal merit intersects with economic pressure, insolvency dynamics, or enforceable recovery paths.

Focus Areas

  • Complex commercial litigation & arbitration.
  • Judgment enforcement and monetization.
  • Bankruptcy & distressed litigation (avoidance actions, lender liability, fiduciary breach, etc.)
  • Insurance recovery and coverage disputes.
  • Litigation-driven restructurings and workouts.

Investment Philosophy

  • Outcome-focused: Underwritten to recoveries, not timelines.
  • Structured control: Capital creates leverage and accelerates resolution.
  • Asymmetric risk: Protected downside with litigation-driven upside.
  • Highly selective: Concentrated, high-conviction investments.

Why We Win

  • Principal-led capital: We invest our own money and think like owners, not allocators.
  • Restructuring & legal strategy: Experienced in litigation across distressed capital stacks and bankruptcy courts.
  • Where others step back: We engage where complexity and contention deter others.
  • Aligned incentives: We succeed only when the case succeeds.

What This Enables

  • Forces well-capitalized defendants to the table.
  • Converts legal claims into strategic financial assets.
  • Removes capital constraints from high-merit cases.
  • Accelerates recoveries and unlocks value trapped in litigation.

1031 Exchange Calculator

The proceeds from the sale of an investment property are subject to a combination of state and federal capital gains taxes, Medicare tax, as well as the tax on the recapture of depreciation and other fees. This calculator is a guide to estimate your potential capital gains tax obligations and weigh your options for reinvestment. Please consult with your tax and legal advisors prior to entering into an exchange.

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The Position

We invest where legal risks become financial leverage

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