Restructuring Modeling

Designed for restructuring-focused investment bankers, consultants and distress debt investors. Trainees will learn the restructuring framework and build a three-statement bankruptcy model the way it's done on the job.

Restructuring Modeling

Course Description

In this course by Wall Street Prep, using the Borders bankruptcy as our primary case study, we begin with an overview of the restructuring and bankruptcy framework. Then we will learn to build an advanced bankruptcy model from scratch, incorporating bankruptcy specific elements like DIP financing, the creation of liabilities subject to compromise, working capital drivers, cancellation of debt income, and Fresh Start accounting. We conclude the course with valuation analysis and a recovery analysis, where we will layer various valuation scenarios onto the model to analyze possible recoveries to the various creditors. At completion, trainees will have developed a 3-statement bankruptcy model from scratch and performed valuation and recovery analyses.

Course Details:

Target Audience

This course is designed to teach restructuring and bankruptcy modeling to students and professionals pursuing careers in restructuring, bankruptcy and distress.

Access Timeframe

Lifetime

Prerequisites

This course does not assume a prior background in Restructuring Modeling. However, it assumes an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.
Certificate Info:

Type of Certification

Certificate of Completion

Format of Certification

Digital

Course Outline

  • Bankruptcy overview
  • Imputing asset values and measuring insolvency from market pricing of debt and equity
  • The importance and limitation of valuation methodologies like DCF and Comps in restructuring
  • Out of court restructuring process
  • In court restructuring process
  • Automatic Stay and Adequate Protection
  • Cash Collateral and DIP Financing
  • Restructuring Leases & Executory Contracts
  • Fraudulent Conveyance & Preference Actions
  • Plan of Reorg & Disclosure Statement and Cram Down Provisions
  • The Absolute Priority Rule
  • Building a fully integrated three statement bankruptcy model
  • Master modeling mechanics that dynamically distinguish between prepetition, postpetition and post-emergence phases of a restructuring
  • Make restructuring specific working capital and operational adjustments to traditional modeling assumptions
  • Build a sophisticated multi tranche debt schedule, including the possibility of a DIP rollup
  • Deriving valuation ranges using multiples
  • Analyzing proposed plan distribution
  • Performing recovery sensitivity by investor class (“waterfall” analysis)

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