With our merchant banking heritage and investment banking capabilities, Carl Marks Advisors is well qualified to assist investors, lenders and stakeholders assess various restructuring challenges including:

Debt Restructurings
Assess balance sheet restructurings and provide baseline operational models to support reorganizations.

  • Assist companies and their creditors in developing, presenting, and forming consensus around a restructuring plan to create value out of unsustainable situations
  • Analyze and review current debt capacities with regard to projected cash flows and provide a third party review on the likelihood of achieving such forecasts
  • Determine appropriate go forward capital structure scenarios
  • Assess capital markets access and implications

Credit Agreements and Loan Covenant Determination
Assist clients in negotiations of salient business terms and determining new adjustments to current loans

  • Assess companies current liquidity and capital structure in relation to its operating and forecasted performance
  • Determine level of debt to maximize cash flow and performance and that which is sustainable
  • Assist lenders in assessing its collateral and working with borrowers to communicate with lenders on covenant breaches with recommendations and solutions
  • Assist lenders in setting new metrics/loan covenants depending upon likely company performance and history

Bankruptcy Advisory Services
We have deep experience in positioning companies to maximize value for stakeholders through the use of bankruptcy protection including:

  • Chief Restructuring Officer services to provide guidance and insight into strategy and business direction as well as formulating a restructuring plan of reorganization while allowing company management to focus on day-to-day activities and operations
  • Supporting sales processes utilizing Section 363 of the bankruptcy code
  • Providing both pre-petition and post-petition services including preparation and filing of necessary schedules and operating reports
  • Support US Trustee information requests as necessary
  • Manage creditors and related committee requirements

Transaction Advisory /Due Diligence
We review and analyze contemplated transactions, including developing M&A strategies, target acquisitions and acquisition criteria, and assist on divestitures of subsidiaries or business units. The support we provide include:

  • Establish dialogue with key constituencies and review necessary reports and documentation including teasers, confidential information memorandums, credit agreements, and other pertinent available company information and data
  • Review target, competitors, standing in the marketplace, earnings and enterprise value on a both a  standalone basis and as if combined with acquiring entity
  • Perform analysis of operating units’ performance identifying variances and investigating reasons
  • Determine balance sheet options and review general ledger journal entries and accuracy thereof
  • Populate electronic data room and prepare corresponding marketing materials