Guide to Distressed M&A Mergers & Acquisitions Restructuring The Law by Matt - December 11, 2020December 11, 20200 Distressed M&A differs from mergers & acquisitions under normal circumstances as time is of the essence in a bankruptcy or distressed situation and numerous dynamics are at play. Investment banks with prominent financial restructuring practices are well versed with distressed M&A situations. Distressed M&A takes place on a tight schedule versus
Restructuring Investment Banking Interview Questions 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
Introduction to Debt Capacity Commercial Banking Credit Restructuring by Matt - September 12, 2019September 12, 20190 Debt capacity is an analysis conducted in determining what is the sustainable level of debt for a company. Debt capacity is a very important concept to understand in credit. As such, debt capacity is the first thing they teach in the training manual for corporate and commercial bankers – how much
Distressed Debt Overview Fixed Income Restructuring by Matt - September 5, 2019September 5, 20190 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 Restructured? 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 Featured Leveraged Finance Restructuring by Matt - February 17, 2019February 18, 20190 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 Restructuring by Matt - February 15, 2017March 2, 20190 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 Leveraged Finance Restructuring by Matt - February 2, 2017March 2, 20190 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 Restructuring by Matt - January 23, 2017February 23, 20190 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 Restructuring by Matt - November 16, 2016December 30, 20200 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