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RESTRUCTURING AND SPECIAL SITUATIONS
ADVISORY
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
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PORTFOLIO COMPANY REPRESENTATION
Provide support to management team, allowing management to focus on core operations
Identification of G&A reduction opportunities
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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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