Restructuring

restructuring

We are involved in restructuring operations carried out by overdebted or/and underperforming companies. These assignments, partly conducted under the rules of the AMF General Regulations, may cover in particular:

  • the consistency between financial diagnosis, future cash-flows and financing sources;
  • analyzing the different recapitalization scenarios and their impact on the stakeholders in the restructuring process;
  • financial valuation of assets available for sale;
  • valuation of equity, debt instruments including convertibles and options.

In connection with this expertise, we remain attentive to the issue of the European Commission proposal for a directive(1) whose provisions shall require restructuring plans submitted for confirmation by a judicial or administrative authority to contain especially “a valuation of the present value of the debtor or the debtor’s business as well as a reasoned statement on the causes and the extent of the financial difficulties of the debtor”(2).

The detailed analysis of the circumstances prevailing for the valuation of the debtor entity thus will become essential in the collective insolvency proceedings; we are able to contribute to it in many cases.

(1) “Proposal for a Directive of the European Parliament and of the Council on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30/EU”, November 22, 2016. (2) Chapter 3, Article 8: “Content of restructuring plans”.

 

Recent assignments

Exemples of public assignments:

  • CGG: reserved capital increases to be subscribed by shareholders, holders of high yield notes and holders of convertible bonds; issuing of several categories of warrants
  • Latécoère: reserved capital increases to be subscribed by creditors
  • Euro Disney SCA: reserved capital increases to be subscribed by Euro Disney Investments SAS and EDL Corporation SAS
  • Monceau Fleurs : simplified takeover bid initiated by Perceva through a own risk mutual fund on shares and convertible bonds of Groupe Monceau Fleurs (now Emova Group)

Exemples of private assignments:

  • Solvency opinions
  • Analysis of default risk
  • Assistance to safeguard plans implementation
  • Critical examination and modelling of business plans
  • Financial diagnosis in connection with medium term assumptions and projections
  • Multiannual computation and follow-up of covenants
  • Searching for alternative financing solutions- searching for alternative financing solutions