How do you model distressed M&A when the target is insolvent or pre-insolvent?

Distressed M&A focuses on liquidity, debt claims, priority waterfall, insolvency process, working-capital holes, rescue financing, and liability assumption. Purchase price may be low, but hidden liabilities and execution risk are high. Model sources and uses around debt payoff / compromise, restructuring costs, cure costs, DIP or bridge financing, and downside cash needs.