Since the world is falling apart we figured we would put something like this together. Thanks to our many friends in RX. Standard investment banking interview questions also apply - restructuring interviews are often very technical. NOTE: This is a work in progress and the questions are scattered. A lot of these
Restructuring
Introduction to Debt Capacity
Distressed Debt Overview
Introduction to Distressed Debt Similar to all other aspects of finance and investing, distressed debt investing means higher risk and higher reward. Distressed debt is in itself a very unique asset class that falls under the jurisdiction of alternative asset managers – primarily hedge funds. Although debt markets are very large
Restructuring Advisory
Investment Banking - Financial Restructuring Advisory When Do Debts Need to be Restructureed? For the layman, financial restructuring is required when the capitalization of a corporate is not appropriate for the economic value of the firm. When an investment bank’s restructuring advisory arm is involved, this always means that the balance sheet is
Incurrence Covenants for High Yield Bonds
Senior Debt Covenants (Maintenance and Financial Covenants) and Protections A covenant is a vow - positive covenants or covenants of a positive nature (do not commit fraud, file your financial statements no later than 60 days after the end of a fiscal quarter) commit an obligor to do something. Negative covenants
Options for Distressed Debtors: Selling the Corporate and Bankruptcy
In a previous post, we discussed refinancing and restructuring options for a corporate. Sometimes, the restructuring and refinancing options do not appease creditors and they may look for a sale. For the more senior creditors, assuming that the company is only slightly underwater, they do not care that much about the
Options for Distressed Debtors: Refinancing and Restructuring
Modeling and Analyzing a Distressed Corporate Before evaluating options, stakeholders in a distressed company must first develop a view as to how much the company is worth. As discussed in our restructuring process post, pro forma cash flows reflecting a healthy company must be analyzed in order to inform the valuation. Investment
The Restructuring Process for the Distressed Company
Stakeholders in Financial Distress and the Distressed Landscape When a company is distressed and runs into difficulties being able to meet debt service, restructuring is required with options ranging from a refinancing to liquidation of assets. Now it has been upheld in a court of law across various developed legal systems that
Restructuring Group in Investment Banking
Introduction to Financial Restructuring Advisory Restructuring (or "RX") is the product group in the investment bank that deals with stressed, distressed and bankrupt debtors. Generally, this means corporate debt, but on occasion we have seen governments go bankrupt - from the municipal level to countries such as Greece or Argentina. Restructuring is
Chapter 11 Bankruptcy – Financial Restructuring
The Unlevered Firm and Financial Restructuring When companies that are unable to meet debt service but have value in continuing as a going concern, it is generally to the benefit to all stakeholders as well as the economy that the company maintains operations while it restructures. Going back to corporate finance theory,