Representation of companies
Understanding the organizational and financial picture
An initial step is to develop clarity around our client’s organizational and financial status. This analysis defines your current financial position and how well your organization is performing in the market. This serves as the starting point for the development of a recovery strategy. Next we develop a specific action plan to gain the cooperation of creditors, suppliers and customers, and move you toward sustained profitability.
Maximizing cash flow
Helping our client managing cash and line of credit availability is paramount in any distressed situation. Working with shareholders and management, we will review and improve cash flow by renegotiating unfavorable contracts and redefining relationships. We work with our client’s key customers, vendors, and creditors throughout the process to protect the resources and contracts necessary for continued operations, while migrating to sustainable profitability.
Working with lenders and capital raise
Our established relationships and knowledge of the lender community enables us to advocate for your needs. Many of our clients retain a relationship with their original lender post-recovery. In cases where capital must be raised, we call on close associations with local, regional, national, and international funding sources.
Developing the plan
In order to maximize the recovery, the best path is paramount to success. Many recovery plans can be implemented informally, without coordinating with the company’s creditors or other key outside parties. Other recovery plans are best implemented using protection of bankruptcy; yet others may be best executed using a formal out-of-court plan. In many cases, we serve management in the role of advisor; in significant situations we function as Chief Restructuring Officer, in others we serve as interim management until the situation stabilizes.
Maximizing the recovery
In some difficult situations, your goals may not be best served by investing more time, money and energy in the enterprise. When the only strategy that will maximize your recovery is a managed wind-down, liquidation, or sale of part or all of the business, Amherst pledges to be diligent in analyzing the solutions, honest in communicating our conclusions and successful in delivering the highest possible value for our client.
Representation of Official Committees of Unsecured Creditors
Amherst’s expertise extends to fulfilling the role of Financial Advisor to unsecured creditor committees. In this role we partner with attorneys who represent the legal rights of the unsecured creditors. Our experience allows us to maximize the recovery for unsecured creditors which may include conducting §363 sales. Often in these matters once the bankruptcy plan has been approved, we may assume the role of Creditor Trustee. In this role we manage the finances of the estate ensuring a timely distribution of the recovery to the unsecured creditors.
Representation of Companies with a Distressed Supplier
In special situations a company may have a critical supplier that is distressed. In these cases Amherst has represented the customer and worked with the distressed supplier to ensure the supply chain is not interrupted and production is fulfilled on schedule. We work with supplier management to see that the proper financing, materials, and operational resources are functioning while maintaining status updates with the customer.