Restructuring Modeling

13 week cash flow analysis is most commonly used in court-ordered restructurings and bankruptcy proceedings; however, it is also critical when assessing a company’s financial strength during workouts and defaults before bankruptcy is the only option. The course starts by working in detail with operational and non-operational cash flows, including in-depth working capital analysis, calculating the borrowing base of a revolver, and understanding how financing gaps are plugged using available facilities. In this course, we use two case-in-points during the course: one to outline the 13 week cash flow process and understand what kinds of events or trends are likely to drive a company into this situation; and a second to build 13 week cash flow model in full detail including the borrowing base calculations for the asset-backed revolver. Distressed Debt uses a real-world case company to discuss the options for dealing with a company on the brink of bankruptcy. The course delves deeper into topics covered in Credit Analysis such as risk assessment, debt capacity, and liquidity analysis and then explores the process of restructuring debt and valuing a struggling company. Look at various exit scenarios and assess how to minimize losses to the creditors.