A&M offers a comprehensive range of Lender Advisory services that supports lender groups, bondholders and other investors to clearly evaluate the challenges faced when borrowers are facing difficulties in servicing their commitments. We can tailor these services to help clients reach — and act on — informed business judgments to ensure their interests are protected and improve overall recoveries.
Our approach to providing Lender Advisory services is led by senior practitioners who have helped clients navigate through these challenges many times before and have senior level relationships amongst the community of lenders, legal and other financial advisors.
Our range of services that can be deployed to support lenders includes:
- Advice and support on stabilization of the situation including:
- Dealing with actual or potential covenant breaches through amendment or forbearance
- Review of short-term cash flow projections and analysis of cash conservation efforts and controls
- Assessment of various stakeholder positions and who should contribute towards stabilizaton
- Evaluation of the causes of the company’s problems, its business plan and financial projections, including an assessment of risks and opportunities
- Assessment of the impact of sensitized financial forecasts on enterprise valuation and how this might impact on stakeholder positions
- Review and assessment of options available to clients and analysis of possible outcomes including fallback planning in the event that various options cannot be implemented
- Advice and support to clients on negotiation and implementation of a financial restructuring agreement
- Performance monitoring following financial restructuring
Throughout the whole financial restructuring process, we will provide active stakeholder management services including coordination within lender groups and also between them and the various other stakeholders.
In addition to providing these services for existing lenders we can deploy a similar approach to helping distressed debt investors evaluate whether to invest in a debt position and then how to maximize their outcome.