Vertical’s experienced restructuring team can assist debtors and creditors, adding substantial expertise in numerous capacities across a variety of scenarios.
Out-of-court restructuring, placement of junior capital and distressed M&A:
- Refinance senior debt
- Place junior capital with alternative capital providers
- Restructure existing debt to match payment maturities with internal cash flow
- Deleverage balance sheet through debt for equity exchange offers
- Sell-side advisory for businesses not viable on stand-alone basis
- Buy-side advisory for acquisitions of insolvent targets
In-court bankruptcy 363 sales:
- Market business as going concern where stakeholders have concluded that the business may not be viable on a stand-alone basis, or that the expected sale value exceeds longer-term going concern value on stand-alone basis, or that sufficient capital is not available to finance the process of confirming a stand-alone plan of reorganization
- Sign up stalking horse buyer(s) for assets
- Conduct auction to achieve highest price for business
Stand-alone plans of reorganization in bankruptcy:
- Arrange DIP financing, if necessary
- Establish estimated enterprise value for business
- Formulate stand-alone plan of reorganization subject to restructured balance sheet
- Arrange exit financing to facilitate emergence of reorganized entity from bankruptcy
- Provide financial backstop for equity rights offerings
Creditor representation:
- Disposition of fixed income instruments to alternative capital providers
- Analyze viability of business on stand-alone basis
- Establish estimated enterprise value of business
- Evaluate pro-forma recoveries under various reorganization alternatives
Fairness and solvency opinions:
- Structure transactions to avoid fraudulent conveyances
- Provide fairness and solvency opinions in various contexts, including tax-free spin-offs of subsidiaries