That should not be a problem at all, and you should get the chance to explain the reasons for all these complications in the essays, should you choose to explain them in detail.
I had dropped out after 2 years of CSE, and went on to do a BBA in Sports Management. I got admitted at IE and LBS, and neither of them seemed to mind my decisions, as long as I could give a reasonable explanation for my actions.
My tip would be to be honest about it and rather than looking at the negative aspects it had on your academics, you should look at the positive aspects it may have had in any other aspect of your life, in whatever way. But I don't think that such a thing would worsen your chances by any standards.
Yes, I did make sure I covered up for my academic glitches (seemingly) with my GMAT score.