Corporate Debt Restructuring and Bankruptcy

Corporate Debt Restructuring and Bankruptcy free download

Master the strategies, financial modeling, and valuation techniques behind debt restructuring, bankruptcy resolution.

In today’s volatile business environment, understanding how companies navigate financial distress is an essential skill for finance professionals. Corporate Debt Restructuring and Bankruptcy is a practical, scenario-based course that equips you with the tools to analyze distressed firms, implement restructuring strategies, and perform valuation in bankruptcy situations.

You will explore the complete restructuring lifecycle—from the strategic rationale behind mergers and demergers to modeling distressed cash flows and navigating bankruptcy laws. With rich case studies, GAAP vs. market-based balance sheet simulations, and advanced valuation models, this course mirrors the real-world challenges faced by equity analysts, investment bankers, and restructuring consultants.

Section 1: Introduction

This section introduces the fundamentals of corporate restructuring, providing clarity on when and why companies pursue it. You’ll explore the lifecycle of restructuring decisions, understand strategic triggers, and assess how distressed scenarios lead to either value destruction or value transformation.

Section 2: Types of Restructuring

Dive into the different forms of restructuring: mergers (horizontal, concentric), amalgamations, joint ventures, demergers, equity carve-outs, divestitures, and capital reduction. You'll learn the motivations behind each move and how these decisions reflect broader strategic and financial goals. This section also includes insights into sector-specific models like power sector restructuring.

Section 3: Corporate Debt Restructuring Case Study

Through a comprehensive case study, you’ll apply theoretical concepts in practice. You’ll work with GAAP and market-based balance sheets, simulate various restructuring events (stock offering, acquisitions, credit term changes), and build DCF models pre- and post-restructuring. You’ll also explore out-of-court restructuring strategies and bankruptcy waterfall scenarios, incorporating priority rules and recovery estimates.

Section 4: CDR Mechanism and Financial Restructuring Framework

Understand how institutional mechanisms like Corporate Debt Restructuring (CDR) function in real life. You'll learn about creditor negotiations, equity conversions, viability assessments (ROCE, DSCR), breakeven analysis, and the ultimate impact on both lenders and company financials. This section shows how restructuring can create—or sometimes fail to create—value for stakeholders.

Section 5: Valuation of Firms in Distress

Valuing distressed firms requires a modified approach. Here, you’ll examine techniques like the Adjusted Present Value (APV) model, simulate distressed scenarios, estimate the probability of default, and use multiple valuation methods. This section also covers the treatment of going concern assumptions, interest rates based on credit ratings, and levered firm valuation under uncertainty.

Section 6: Accounting Issues in Restructuring

Get hands-on with the accounting side of restructuring. You’ll tackle real-world complexities like recognizing bond exchanges, adjusting carrying values, constructing amortization tables, and projecting total future cash flows. This section ensures your valuation models stay consistent with accounting standards and reporting frameworks.

Section 7: Dan’s Petroleum Case Study

Apply everything you’ve learned through a multi-scenario case study. Dan’s Petroleum undergoes different restructuring strategies—you'll model revenue growth, operating margins, working capital, cash flow statements, capital structure, and leverage. Analyze the financial outcomes of each strategy and assess which restructuring plan maximizes shareholder value.

Section 8: Conclusion

Wrap up with a reflective overview of the key concepts covered in the course. You’ll revisit the restructuring journey, from strategic planning to execution, valuation, and post-restructuring recovery. Final lectures highlight practical lessons from 2018 and summarize how successful restructuring efforts restore solvency and create long-term value.