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Strategic Alternatives

 Strategic alternatives provide an overview of the basic restructuring options available to the debtor and its creditors ― Incorporates key considerations / analysis and presents restructuring options

• Industry dynamics, valuation range, liquidity, covenants, debt capacity, ability to obtain

financing, timing, etc.

 Typical strategic options OUTRIGHT SALE OF COMPANY • •

Value can be maximized by selling the firm Limit cash burn, achieve control

NEW MONEY / REFINANCE •

If liquidity / maturity is an issue, a refinance or equity infusion may provide enough liquidity to help the company survive and effectuate an operational turnaround

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DEBT FOR EQUITY SWAP

SELLING ASSETS •

It may prevent a restructuring, or it may serve as the basis for a restructuring around the remaining assets

• • •

Debt can be traded for equity Typically dilutive to current equity Requires the equity sponsor to acknowledge that at least a portion of their investment is ‘out of the money’ 9

Coaching assembly overview of restructuring  

Coaching assembly overview of restructuring

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