The company I’m evaluating went through an Article 9 restructuring last year. My understanding is that this means the lender seized the company’s assets after a default and sold them back to the same owner under a new legal entity. According to the broker, Article 9 allows the business to keep running free of old debts. For context, when calculating SDE, they add back $200K–$400K of interest expense (SDE is approx. $400K on $1M revenue), supposedly because the owner borrowed from high-interest lenders for personal expenses. Does an Article 9 restructuring always raise red flags? I would appreciate any feedback on extra diligence steps or hidden risks to watch out for after this kind of asset sale.