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Restructuring and workouts are among the most complex of all corporate finance executions. Restructurings are intricate, delicate, and present risks to the uninitiated and opportunities to the experienced and well advised. It is common for them to involve mergers and acquisitions and capital raising as elements of a solution.
We seek to minimize the costs of financial distress. No one benefits from damage being done to the company. If the process is not managed optimally, the decrease in enterprise value of the company can be severe. Suppliers may stop shipping, customers may become concerned about product quality, returns and warranties, and valued employees may leave, or desirable talent may be unobtainable in the labor market.
We understand the mindset and disposition of every class. We advise companies, lenders, suppliers, private equity firms, boards of directors, acquirers and other parties in distressed situations. This permits us to structure a plan that works for everyone.
We always work towards obtaining an out-of-court settlement. Each class benefits due to the ability to share in the savings of costs that would be incurred over filing a Chapter 11. Prepackaged bankruptcies are the next best alternative. The goal is to minimize the loss of valuable Intellectual Capital: skilled staff, suppliers, customers, and brand image.
We manage the financial distress and let management run the company. Being a CEO or CFO is a full time job, even for healthy companies. Add in creditor negotiations, maintaining raw material supply, lower employee morale, court proceedings and the plan of reorganization, and the risks to the company rise while the chances of successful resolution decline.
During a financial crisis, speed is essential. Cash needs to be marshaled and thirteen-week daily cash flow projections become an indispensable tool. We work around the clock when the situation requires it.
• Creating a plan of reorganization, whether out-of-court, prepackaged, or traditional
• Creditor, borrower, debtor and trustee representation
• Enterprise valuation, value cascade analysis and valuation of security class
• Identification of and negotiation with replacement lenders
• Negotiation with existing creditors
• Capital raising
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