Restructuring Modeling – Wall Street Prep

Course Overview

Restructuring Modeling by Wall Street Prep clarifies the importance of remodeling models and the right how-tos. The course uses the case study of Borders bankruptcy to bring up the reality while introducing theories of valuation analysis, recovery analysis, restructuring approaches, etc.

Course Outline

Bankruptcy/restructuring industry primer

• 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

Case study modeling and valuation

• Building a fully integrated three statement bankruptcy model
• Master modeling mechanics that dynamically distinguish between prepetition, post-petition, 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)

What Will You Learn?

• How to reclassify working capital like critical vendors/AP.
• How to design the balance sheet roll-forward schedules with an ongoing link structure to the cash flow statement.
• Insights into fees, rejection claims, and CODI.
• How to build a recovery waterfall that can accommodate scenarios.
• The effects of Fresh Start Accounting on the model.
• Effective methods to enhance model efficiency, the performance of auditing, etc.
• How to avoid circular references in the model without losing the model integrity.

Who Is This Course For?

The course is great for students and professionals who are pursuing careers in bankruptcy, bank model restructuring, etc.