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Debtor Restructuring |  |
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"Despite tremendous deal fatigue between the
creditors and debtor, Brandlin & Associates
successfully earned the creditors' trust by consistently
providing quality financials and a strategy that
considered the needs of all parties involved. In the
end, both the creditors and debtor ended up with the
best solution possible, thanks to
Brandlin."
The following scenario did not seem far-fetched a couple of years ago: Having enjoyed many years of strong cash flow, the company's principal rapidly expanded into new lines of businesses. The banks, operating in an unprecedented competitive environment, financed the growth and expansion based on strong historical cash flows and underlying collateral values. Alas, the recession hit: Cash flow declined precipitously and valuations of the supporting assets plummeted to a fraction of the loan balances. The borrower defaulted on 20 separate secured credit facilities and had failed to deliver on self-styled, ad-hoc restructuring proposals. Creditors lost confidence and the borrower was facing corporate and personal liquidation. Now what? A client of the law firm McDermott Will & Emery recently faced such a crisis. McDermott turned to Brandlin & Associates for assistance in sorting out the borrower's financial position and establishing a tactical plan to re-engineer the company's credit facilities in order to avoid liquidation. Brandlin conducted a thorough forensic investigation of the company's books and records to establish credible financial statements and projections. With a clear understanding of the borrower's financial position, Brandlin developed a restructuring strategy which gave creditors a result superior to liquidation and gave the borrower an opportunity to move forward. Brandlin presented and negotiated the plan directly with creditors, who previously had given up on all efforts to renegotiate the credit and lease facilities. The revised terms were accepted by all the major creditors, in one case literally on the courthouse steps. The borrower is moving forward with its business plan to re-create value for both the creditors and the company itself. For more information, please contact Jeff Brandlin (jeff@brandlin.com) or Mike Adler (mike@brandlin.com) at 310-789-1777.
"Very few people have the 24/7 work ethic of the
Brandlin and McDermott Will & Emery teams. Over
months of negotiation, they
remained committed, adjusting their tactical plan
when necessary to achieve our targeted
result."
Brandlin & Associates is an exclusive provider of investigative accounting and financial and strategic consulting services. We pride ourselves on offering superior technical expertise, years of practical experience and unparalleled service to decipher financial and operational performance metrics. As a result, our clients are able to make informed decisions in a timely manner. |
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