SCG_distressed_maximizing

Distressed

Ultimately, regardless of whether a restructuring takes place out-of-court or under
Chapter 11, the troubled company’s owners and management team will fare best when
the company is restructured in a manner that appropriately defines its enterprise value.
The task of doing so is one of the most important
aspects of virtually every restructuring assignment
Spectrum undertakes.

The restructuring process is inherently fraught with
risk and uncertainty. A wide spectrum of outcomes,
from liquidation, where going concern value
disappears, to a successful fresh start with equity
interests remaining intact, should be considered in
virtually every restructuring. Spectrum sees its role
as one of assisting in assessing and managing this
range of outcomes for the benefit of its clients and their stakeholders.

Understanding the dynamics of the restructuring process is key to maximizing value and
thereby achieving a successful result. Spectrum’s partners, having participated for many
years in all aspects of restructurings, both as advisors and principals, have a keen
understanding of the process.

On the advisory side, Spectrum’s partners have led corporate restructurings as lawyers,
investment bankers, senior operating officers and CPA’s. Over the years, the partners
have represented creditors of every stripe – secured, undersecured, unsecured, trade
and bondholders – in dozens of restructurings involving many billions of dollars of debt.
Spectrum’s partners have also been engaged to participate in troubled company consent
solicitations, to deliver fairness and solvency opinions, provide litigation support
(including testimony), and conduct valuations, recapitalizations and merger and
acquisition transactions. These transactions have taken place across a wide variety of
industries, including apparel, manufacturing, distribution, metal mining and production,
transportation, retail, technology and business services.

These years of professional experience leading sophisticated restructuring transactions
across many industries have given Spectrum’s partners invaluable insights into the
attitudes and positions likely to be held by investors and trade partners (and their legal
and financial advisors) in every part of the troubled company’s capital structure. Spectrum
has worked closely with these investors and their professionals, and we understand their
needs, strategies and tactics. We believe that we have honed our negotiating skills to
deal with the troubled company’s creditors in a manner that will maximize value, thereby
generating the best result for all constituencies.