Special Situations

Solutions for Financially Distressed Companies and Assets

 

 

 

 

Sand River has experience and relationships to assist companies and their stakeholders in financial distress and other troubled situations

Key Tenets of Effective Advice to Companies in Financial Distress

  • Understanding of enterprise valuation of a company or asset using objective and time-tested approaches
  • Trusted relationship and an open and realistic dialogue with company management and its key constituents with respect to the advantages and disadvantages of various strategic alternatives including assets sales, merger scenarios, sources of additional equity and debt financing alternatives
  • Access to a broad range of potential financial and strategic buyers, which allows management to select the most credible buyer with the least execution risk
  • Educated view on conditions in the capital markets and the availability and cost of equity and credit
  • Strong relationships with banks and institutional investors with expertise in special situation lending and investing

Distressed M&A poses unique challenges and these situations may involve selling a company or its assets quickly, often in contested or litigious settings

  • Changing industry conditions
  • Potential loss of key management personnel
  • Declining operating performance and cash flow
  • Stretched payables and limited liquidity
  • Restricted access to new capital
  • Total debt exceeding enterprise value
  • Conflicts between the various constituents that hold competing claims or interests
  • Covenant and/or payment defaults on debt instruments
  • Commencement or threat of bankruptcy proceedings

Restructuring requires a flexible and often creative approach and Sand River can provide solutions for owners of distressed assets by coordinating monetization or disposition strategies and processes

Restructuring Solutions

 

  • Valuation of companies, entities, securities and assets, both as going concerns and in liquidation scenarios
  • Assistance to management in preparing financial forecasts and presentations
  • Development of restructuring proposals
  • Advocacy in the negotiation of terms and conditions with creditors with the goal of amending and restructuring existing debt and equity
  • Sales or purchases of distressed companies, divisions, and assets
  • Sales or purchases of performing and nonperforming loans
  • Structuring, negotiation, and confirmation of plans of reorganization
  • Structuring and analysis of exchange offers
  • Arranging for rescue financing, DIP facilities and exit financings
  • Support in hiring or managing external resources