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All Restructuring (RX) Content
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13 Week Cash Flow Model (TWCF)
13 Week Cash Flow Model (TWCF)What is a 13 week cash flow model As the name suggests, a 13-week cash flow model is a weekly cash flow forecast. The 13 week cash flow uses the direct method to forecast weekly cash receipts less cas...
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Absolute Priority Rule (APR)
Absolute Priority Rule (APR)What is the Absolute Priority Rule (APR)? The Absolute Priority Rule (APR) refers to the underlying principle dictating the order of claims by which recoveries are distributed to creditors. The Bankru...
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Altman Z-Score
Altman Z-ScoreWhat is the Altman Z-Score? The Altman Z-Score, designed by NYU Professor Edward Altman, is a model used to predict the near-term likelihood of companies falling into bankruptcy or insolvency.
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Cash Collateral Motion
Cash Collateral MotionWhat is the Cash Collateral Motion in Chapter 11? Cash Collateral is defined as cash, cash equivalents like marketable securities, and the proceeds from the sale of liquid assets such as accounts rece...
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Chapter 11 Bankruptcy
Chapter 11 BankruptcyWhat is Chapter 11 Bankruptcy? If filing for bankruptcy protection has become necessary, Chapter 11 Bankruptcy grants the distressed company an opportunity to restructure its debts in-court while cont...
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Credit Analysis
Credit AnalysisWhat is Credit Analysis? Credit Analysis is the process of evaluating the creditworthiness of a borrower using financial ratios and fundamental diligence (e.g. capital structure). Often, some of the m...
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Creditor Claims Trading
Creditor Claims TradingWhat is Creditor Claims Trading? Creditor Claims Trading is the purchase and sale of valid claims on debtors by creditors hesitant to participate in the Chapter 11 reorganization.
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Creditor Committees
Creditor CommitteesWhat is the Role of Creditor Committees in Chapter 11 Bankruptcies? In Chapter 11 bankruptcies, Creditor Committees are formed to represent the interests of a particular group of creditors and ensure...
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Critical Vendor Motion
Critical Vendor MotionWhat is the Critical Vendor Motion in Chapter 11? The Critical Vendor Motion grants post-petition debtors the ability to pay off prepetition obligations owed to certain suppliers and vendors deemed “c...
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Debtor vs. Creditor
Debtor vs. CreditorWhat is Debtors vs. Creditors? Debtors are the entities with unmet financial obligations in the context of business transactions, whereas the Creditors are the entities owed payments.
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DIP Financing
DIP FinancingWhat is DIP Financing? DIP Financing functions as a specialized form of financing to fund immediate working capital needs and maintain adequate liquidity for companies in the process of Chapter 11 ban...
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Distressed Buyout Guide
Distressed Buyout GuideWhat is a Distressed Buyout? The Distressed Buyout strategy describes private equity firms accumulating a majority stake in a distressed company under the premise that a turnaround is feasible, i.e. t...
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Distressed Debt Investing Primer
Distressed Debt Investing PrimerWhat is Distressed Debt Investing? Distressed Debt Investing involves purchasing debt at a discount from existing lenders, where the borrower is nearing insolvency or in financial distress. The object...
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Distressed M&A Guide
Distressed M&A GuideWhat is Distressed M&A? Distressed M&A represents an opportunity to purchase the assets of a seller in financial distress at bargain prices for qualified bidders. Notably, Section 363 of the B...
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External Stakeholders in Restructuring
External Stakeholders in RestructuringWhat are External Stakeholders in Restructuring? While External Stakeholders might not hold a claim on the company in the sense that lenders do or by holding an ownership stake in the equity of the di...
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Financial Distress
Financial DistressWhat is Financial Distress? Financial Distress is caused by a specific catalyst that prompted the company to become distressed, and compelled management to hire a restructuring bank. Once hired, the r...
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Financial Restructuring Free Course [11-Part Series]
Financial Restructuring Free Course [11-Part Series]Restructuring Course: Free 11-Part Mini-Series In this 11-part free mini-course, you will learn about financial restructuring. The course is meant to introduce newbies to a high level overview of fina...
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First Day Motion Filings
First Day Motion FilingsWhat are First Day Motion Filings? The First Day Motion Filings is one of the first steps of a Chapter 11 bankruptcy proceeding and is when the debtor appears before the Court to file urgent requests...
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Fraudulent Conveyance
Fraudulent ConveyanceWhat is Fraudulent Conveyance? Fraudulent Conveyance refers to the preferential transfer of an asset under the intent to defraud other existing claim holders. A closely related concept based on a simi...
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Fulcrum Security
Fulcrum SecurityWhat is the Fulcrum Security? The Fulcrum Security is the most senior security that, after undergoing restructuring, has the greatest likelihood of conversion into equity ownership. The positioning of...
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Impact of Recession on Financial Services Industry
Impact of Recession on Financial Services IndustryFinancial Services Industry in Recessions Over the past few months, by far the most common questions we have received have to do with the economy as a whole, and more specifically, how it will impact...
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Insolvent
InsolventWhat is Insolvent? The term Insolvent describes a company that is no longer capable of meeting its financial obligations such as debt and liabilities on the date of maturity. With that said, a company...
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Internal Stakeholders in Restructuring
Internal Stakeholders in RestructuringWhat are Internal Stakeholders in Restructuring? To receive approval, restructuring plans must be constructed based on the alignment of the incentives amongst the key internal stakeholders. Under norm...
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Liquidation Value
Liquidation ValueWhat is the Liquidation Value? Liquidation Value refers to the method of approximating a valuation range of a debtor in order to measure the estimated recoveries of allowed claims. The recoveries of c...
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Out-of-Court Restructuring
Out-of-Court RestructuringWhat is an Out-of-Court Restructuring? Out-of-Court Restructuring is in reference to the company attempting to resolve its financial distress and insolvency concerns without the Court stepping in. On...
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Pari Passu
Pari PassuWhat is Pari Passu? Pari Passu is a Latin term that roughly translates to “in equal step” and is frequently used in bankruptcy proceedings. Given the specific context of intercreditor agreements amid...
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Plan of Reorganization (POR)
Plan of Reorganization (POR)What is the Plan of Reorganization? The Plan of Reorganization (POR) is a document containing the post-emergence turnaround plan drafted by the debtor after negotiating with creditors. Upon settling o...
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Restructuring Interview Questions
Restructuring Interview QuestionsHow to Prepare for Restructuring Interviews? The following Restructuring Interview Guide covers the RX investment banking recruiting process and the common technical questions and answers to prepare f...
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Restructuring Investment Banking (RX)
Restructuring Investment Banking (RX)What is Restructuring (RX) Investment Banking? Restructuring Investment Banking (RX) product groups advise debtors (the distressed companies) and creditors (banks, lenders) when capital structure issu...
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Restructuring Primer
Restructuring PrimerWhat is Restructuring? Corporate Restructuring (RX) refers to the financial reorganization of distressed companies with capital structures deemed unsustainable.
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Structural Subordination
Structural SubordinationWhat is Structural Subordination? Structural Subordination determines the order in which subsidiary-level claims are repaid relative to claims held at the parent (or holding) company level of the oper...
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U.S. Trustee Program
U.S. Trustee ProgramWhat is the U.S. Trustee Program? The U.S. Trustee is the bankruptcy arm of the U.S. Department of Justice (DOJ) that is responsible for oversight in the administration of a bankruptcy case. Overall,...
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