The 2020 Pandemic: A Corporate Life Cycle Accelerant
The road paved by COVID-19 appears to be a long and winding one for turnaround professionals. Unlike other recessions, where life eventually returns to the way things used to be, the pandemic recession will lead to significant changes in individual and societal behavior that remain long after it’s...
Situation Analysis
Transfer pricing can be a useful tool and source of information for turnaround and restructuring professionals. Although the practice of transfer pricing is most closely associated with tax planning and compliance, restructuring professionals stand to benefit from using the wealth of information...
Real Estate Could Yield Much-Needed Liquidity for Educational Institutions
Early in the pandemic, a think tank responded to the financial crisis facing America’s colleges and universities by recommending the use of a single metric to gauge risk at these institutions—liquidity. The Century Foundation’s basic argument was that schools should be ranked as liquid (having at...
CROs Adapt to Limits on On-Site Presence
Can a chief restructuring officer (CRO) continue to be an effective and efficient resource for lenders in this new normal environment? The short answer is “absolutely.” But the longer answer is complicated. Workouts of lenders’ distressed credits aren’t going away, and in fact, they most likely...
Getting the Deal Done, Even During a Pandemic
As a result of the COVID-19 pandemic, most people have had to adjust to the new normal of working remotely. Most nonessential offices and businesses began shutting their doors in mid-March. The uncertainty of so many different facets of everyday life being turned upside down was stressful to many,...
Winners and Losers
The COVID-19 pandemic has created winners and losers, often penalizing and benefiting entire industries on the basis of how their respective operations, products, and services fit into the new business environment. This phenomenon poses a challenge to business leaders sifting through myriad factors...
Remote Bankruptcy
The COVID-19 pandemic has wreaked havoc on large portions of the American economy. Small and mid-size businesses have felt the greatest impact, because they generally have less cash flow and access to capital markets that can allow a company to weather a severe business interruption like that...
Subchapter V
Most middle market lenders probably paid little attention when the Small Business Reorganization Act (SBRA)—popularly known as Subchapter V, referring to the new Subchapter V of Chapter 11 of the Bankruptcy Code—took effect in February 2020. Only businesses with combined secured and unsecured debts...
What Lenders Expect  from Borrowers Battered  by COVID-19 Fallout
The COVID-19 pandemic has created a seismic shock to the economy, slowing and in many cases stopping the gears of commerce. The resulting drop in demand for products and services has been dramatic, with U.S. GDP contracting 33% in the second quarter of 2020. This, in turn, has given rise to an...
Medicare, Medicaid Provider Agreements May Transfer Free and Clear in Bankruptcy
There are significant benefits to a healthcare entity selling assets in bankruptcy, particularly with respect to the transfer of its Medicare or Medicaid provider agreements. A commonly held view 1 is that bankruptcy offers little use to healthcare entities reliant on Medicare or Medicaid payments...