Financial Advisory & Restructuring

We have experience negotiating and structuring tailored solutions on pre-emptive recapitalizations, structuring and advice on private placements, inter-creditor negotiations, acquisitions and sales of distressed companies and assets, and a range of other advisory services for a diverse client base. We strive to reach consensual deals that are in the best interests of our clients, and have a history of brokering transactions in situations with divisive inter-creditor issues, as well as a wide range of other financing based strategic decisions. Prassas has no conflicts from other business activities or product offerings to influence our advice.

• Debtor Advisory We provide advisory services to debtors both inside and outside formal bankruptcy. We understand the requirements and constraints of investment and commercial banks, asset-based lenders, mutual funds, mezzanine debt sources, and private equity participants. As such, we can identify the proper source of capital, renegotiate credit and equity terms and conditions, or refinance commercial or bonded indebtedness (in or out of bankruptcy). We recognize that every situation is unique and that traditional solutions are not always best suited for our clients. We think creatively about the options and select attributes of different strategic alternatives that can be packaged together into a compelling solution.

• Bankruptcy Advice A successful restructuring of outstanding bonds and other indebtedness (in term, amount or interest rate) will maximize the position of the borrowers, while maximizing a return to credit providers that might not otherwise have been achieved. We can assist with Chapter 11 preparation such as communication plans for lenders, employees, and creditors; bankruptcy schedules and operating reports; and overseeing litigation support.

• Distressed M&A Prassas advises either buyers or sellers of distressed assets and/or companies. Prassas is able to advise a client throughout the entire process, including identification of targets/buyers, participation in a sales process and court proceedings, if necessary. We look to identify creative tactical or strategic solutions to unlock value in every situation. We recognize that executing M&A in distressed situations requires incremental skills that are not always required within traditional M&A transactions. Some of these skills are working with a highly levered acquirer or target, managing the bankruptcy process, performing a valuation that can withstand court scrutiny and managing inherent conflicts of interest among different constituencies.

• Creditor Advisory. Prassas advises creditors and committees of financially distressed companies both inside and outside formal bankruptcy. Our goal is to help creditors maximize returns from distressed corporate situations and to work with other constituents to achieve that return in a timely manner. We understand that creditors may value the form of consideration and other terms of a restructuring proposal differently, and we work with committees to optimize the returns our clients receive based on their desired outcome. We have also advised some of the nation’s largest mutual funds on the restructuring alternatives for over-leveraged or under-performing fund investments. Recent work has involved identifying sources of federal stimulus funds, to enhance the balance sheet or provide the capital needs for a deteriorating credit, or to redeem the outstanding bond financing entirely with low cost Recovery Act funding.

• Forbearance Agreements / Recapitalization. We can negotiate forbearance agreements (in which the lender is willing to forebear, or forgo any action until a business plan is developed; and the loan terms and conditions are renegotiated) which meet the mutual needs of the borrower and lender.