KGI's extensive experience representing, debtors, creditors, equity holders and other constituencies in chapter 11 proceedings enables us to deliver superior results for our clients. We utilize our thorough understanding of the bankruptcy process to determine the key issues and leverage points in a given case, and apply the relevant tactical and analytical tools at our disposal to our clients’ advantage. Our work in chapter 11 proceedings spans a wide variety of industries and includes:
KGI has advised companies on bankruptcy proceedings since 1984. Our experience with all types of restructurings enables us to determine when bankruptcy is the right course of action, and our understanding of the bankruptcy process enables us to achieve the best results for our clients in such cases. Our work in the bankruptcy context includes:
- Developing plans of reorganization
- Assembling financial forecasts (13-week and other)
- Negotiating with creditor and other constituencies
- Obtaining DIP/Exit Financing
- Executing sales transactions under Section 363 of the Bankruptcy Code
- Performing valuations
KGI often provides interim management in bankruptcies, including the following key roles:
- CRO: A role specific to managing the restructuring activities
- CEO/COO: Interim operating management duties
- CFO: In many cases the company has lost its top financial officer, or the added burden of the insolvency has overloaded existing management
It is often important in a chapter 11 proceeding to determine whether a company was solvent at a certain historical point in time. There are specific tests that must be applied to conduct a solvency analysis that conforms with accepted standards. KGI has performed solvency analyses on behalf of clients in bankruptcy proceedings, submitted its solvency reports to the court, and defended them in court.
In the course of a bankruptcy proceeding, it is often necessary to examine a company’s books and records from prior periods to assess their accuracy and veracity. Often the records are incomplete and conducting these retrospective accounts requires locating the missing pieces to the puzzle. KGI can vet the accounting records and both provide a fair and impartial evaluation of the accounting records and identify the missing pieces necessary to complete the picture.
Litigation is increasingly becoming an important piece of any bankruptcy proceeding. From contested adequate protection hearings to Plan confirmation battles, constituents in a bankruptcy proceeding need to be prepared to present their case in court. Indeed, often being thoroughly prepared to litigate one’s position can increase the likelihood of a favorable settlement. KGI has repeatedly supported counsel in bankruptcy litigation by providing analysis and expert witness testimony to support its clients' position and achieve superior results.
Unsecured claims in chapter 11 filings often include thousands of individual claimants. A detailed analysis of the claims registry, working in concert with the legal team to identify overstated claims and separate legitimate claims from the questionable or illegitimate, is necessary to determine the actual claims pool.