Recapitalization & Restructuring

A significant component of the turnaround of a troubled enterprise is a restructuring or deleveraging transaction that yields an appropriate capital structure. In considering restructuring alternatives, a key consideration will be whether or not to implement a proposed restructuring transaction inside or outside of bankruptcy. Whether operating in-court or out-of-court, Morgan Joseph provides clients with the services that troubled companies and their creditors require to achieve timely solutions. Our services and advice will be based upon rigorous fact-driven analyses concerning liquidity, debt capacity and value.

The Out-of-court services provided by Morgan Joseph include: (i) restructuring/and or renegotiating credit agreements and covenant packages for secured and unsecured debt; (ii) structuring, negotiating and soliciting exchange and/or tender offers; (iii) rendering fairness/solvency opinions in connection with a restructuring transaction. In-Court services include: (i) assessing liquidity, and if necessary, raising debtor-in-possession financing; (ii) analyzing, constructing, negotiating and confirming consensual or contested plans of reorganization; (iii) as necessary, marketing and raising new capital to support a plan of reorganization; and (iv) litigation support and expert testimony. In order to ensure that a restructuring transaction is the best strategic alternative, our work is often performed in conjunction with a parallel process to identify merger and acquisition opportunities as well as potential financing alternatives.