As a means of resolving challenging balance sheet problems and providing maximum recovery for all stakeholders, both in and out of bankruptcy, the Mirus Special Situations Group has a successful track record that includes:
- Negotiating the sale of discreet assets, including licenses, real estate, or entire operating divisions;
- Renegotiating existing senior and subordinated credit facilities;
- Restructuring unsecured creditor obligations; and,
- Restructuring the equity ownership, including conversion of certain debt obligations into equity.
Mirus works with our client’s directors and management, as well as with the company’s professional advisors and in some cases creditors, to develop reorganization plans that are in the best interest of the reorganized company, taking into account all of the various stakeholders’ goals and objectives. In some cases, our professionals will quickly determine that a consensual reorganization is impossible given the competing interests of shareholders, lenders, and other stakeholders, but in every restructuring engagement, we seek to accomplish the following:
- Develop a business plan and corresponding financial projection that determines the amount of capital required for the continuing operations, and from that determine the company’s capacity to service debt on an ongoing basis;
- Determine the amount of equity that will be preserved (or contributed) in the newly restructured business based upon a complete understanding of each stakeholder and the determination of potential, future value of the equity based on the plan of reorganization;
- Negotiate a “revised” equity structure, relying on Mirus’ proven ability to arbitrate among the stakeholders;
- Ensure that the revised equity structure and any new contributions of capital are supported by a detailed analysis to demonstrate the best value to the reorganized company, with the goal of increasing the likelihood that the business will be viable going forward.