Bankruptcy & restructuring
Financial advisory inside an insolvency
Insolvency work is unlike other engagements in one respect: the reporting obligations start immediately and do not wait for the analysis to be finished.
Debtor side
Getting through the filing and into a plan
We serve as financial advisor to operating debtors, including in Subchapter V cases, and prepare the mechanics: bankruptcy schedules, the statement of financial affairs, cash budgets, monthly operating reports, and the financial exhibits to a plan. Where the accounting records will not support any of that, reconstructive accounting comes first.
Creditor and trustee side
Testing what the estate is owed and what it can recover
- Solvency analysis
- Balance sheet, cash flow and unreasonably small capital tests as of the relevant dates, including whether specific transactions caused or deepened insolvency.
- Preference and fraudulent transfer analysis
- Identification and quantification of avoidable transfers, reasonably equivalent value analysis, and the defenses likely to be raised against each.
- Forensic investigation
- Tracing of pre-petition transfers to insiders and affiliates, and reconstruction of records where the debtor’s books are unreliable.
- Plan feasibility
- Testing whether projections supporting confirmation are achievable, and identifying the assumptions the plan depends on.
- Valuation
- Enterprise and asset valuation for plan confirmation, cramdown, adequate protection, and sale processes.