Learn / Restructuring and distressed Go to Overview 1. How companies get into trouble 2. Out of court fixes, Pro 3. Chapter 11 mechanics, Pro 4. Valuation and recovery in distress, Pro 5. The fulcrum and plan value, Pro 6. Liability management, Pro 7. Distressed investing returns, Pro Flashcards, 0 of 15 reviewed Basic quiz Advanced quiz Terms Restructuring and distressed
0 of 7 lessons
0 of 15 cards What happens after the covenant trips: why companies run out of road, the fixes tried out of court, how Chapter 11 works, who ends up owning the company, and how distressed investors get paid.
B Basic3 lessons 1 How companies get into trouble Companies file when they run out of cash or cannot refinance, not when they post a loss. Separate the liquidity problem from the solvency problem and you know which fix can work. 9 min 2 Out of court fixes Most restructurings start, and many end, without a court. Waivers, extensions, PIK, new equity, and distressed exchanges are cheaper than Chapter 11, but they depend on getting enough holders to agree. 10 min 3 Chapter 11 mechanics Chapter 11 freezes collection, funds the company while it fixes itself, and lets a plan bind holdouts once enough of each class agrees. The voting math and the priority rules decide who gets what. 11 min Q Basic quiz 10 questions, 80% passes