RESTRUCTURING AND SPECIAL SITUATIONS

Sand River Capital seeks to provide solutions to maximize value for stakeholders in its special situation advisory mandates

BORROWER REPRESENTATION

Evaluation of lender’s real perspective on the Borrower, which if often not shared directly with borrowers
 
Extension of additional capital to facility turnaround, recovery, and solvency
 
Negotiation of amendments to provide for extensions of maturity, amortization and rate
 
Exploration of forgiveness and/or conversion of debt positions into equity
 
Managing borrower and external resources to prepare for and navigate through financial restructuring

LENDER REPRESENTATION

Sale of whole loan or a portion of loan to a third party
 
Cost reduction initiatives for the company to enhance cash flow
 
Consideration of allowing borrower to implement certain low cost / high return capex initiatives to enhance cash flow
 
Asset sales by the borrower, with proceeds to pay down debt
 
Merger or sale of borrower
 
Explore refinancing alternatives for the borrower

PORTFOLIO COMPANY REPRESENTATION

Provide support to management team, allowing management to focus on core operations
 
Identification of G&A reduction opportunities
Re-negotiation of lease terms
 
Assessment of management team
 
Negotiation with trade creditors 
 
Management of relationship with financial sponsor and/or other stae
 
Assessment, negotiation and engagement of requisite external resources

RESTRUCTURING ADVISORY SOLUTIONS

Valuation of companies, entities, securities and assets, both as going concerns and in liquidation scenarios

Assistance to management in preparing financial forecasts and presentation
 
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

KEY TENANTS 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

CHALLENGES IN SPECIAL SITUATIONS ADVISORY MANDATES

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

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