In a distressed situation, time is of the essence. The debtor company’s credibility may be diminished. Management and employees are operating under significant stress. We can provide the following services:
Assessment / Audit
- Determine whether the core business can be saved
- Management capability assessment. Determine the need for “stay bonuses.”
- Pre-petition cash planning, manage cash, working capital / liquidity analysis
Intervention / Communications
- The company can lose credibility and cooperation if inquirers are given inaccurate or conflicting information
- Develop an appropriate communications program and become the spokesperson
- Define alternative courses of action and assess risks and benefits of each. Consider only alternatives that are actionable.
- Build consensus among key stakeholders
- Lead and implement the consensus solution.
- Financial advice to class of creditors, such as the unsecured creditors. In this situation, we would help a particular class of creditors to maximize their position.
- Minimize value diminution due to bankruptcy.
Pre Petition Mediation Services
Bankruptcy can be very expensive and time consuming. Companies may want to avoid a bankruptcy filing.
- Develop reasonable forecasts, restore credibility with lenders and implement plans to increase cash flow.
- Perform a liquidation analysis of alternatives and range of valuation.
- Mediate an acceptable level of value to the various classes of creditors.
- Develop consensus among the various stakeholders
- Develop recapitalization plan that minimizes dilution to equity holders.
Chief Restructuring Officer and Other Interim Management
We bring management to the distressed situation
- Control of cash
- Manage the turnaround of the debtor company.
- Bring leadership that is skilled at difficult situations.
- Provide effective day to day management that deals with liquidity and operational issues.
- Implement the strategy
- Coordinate communications with government agencies, DIP lenders, and bankruptcy court.
- Hands on, senior operating experience CPA and former chairman of the NYS Society of CPA’s Publishing Committee.
- A proven track record for successfully managing distressed operations.
- Broad based expertise in the media industry.
- Network of potential strategic buyers, PE firms, lending institutions, and hedge funds
- Prepared to mobilize quickly