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Being a CTP or CTA Can Make a Real Difference

Pressures Continue to Grow in the Ag, Logistics Industries

This issue of the Journal of Corporate Renewal is focused on why being a Certified Turnaround Professional (CTP) or Certified Turnaround Analyst (CTA) can add value to your professional brand. When you earn the Certified Turnaround Professional or Certified Turnaround Analyst designation, you are demonstrating not just to your industry but also to the business community at large your dedication to and competence in turnaround and restructuring.

In fact, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) makes certification more important than ever. Section 415 of that law directs courts to consider whether a professional person is certified or has otherwise demonstrated skill and experience in the bankruptcy field. This makes certification a specific factor in the award of compensation to professionals. In a highly scrutinized profession, the CTP and CTA designations are objective measures of the experience, knowledge, and integrity necessary to conduct corporate renewal work.

Our industry has evolved from its infancy 30-odd years ago into an international force for corporate renewal. While countries differ in legal structure, in whatever legal or financial restructuring form it takes, the fundamental purpose of corporate renewal remains the same. Re-creating value, saving jobs, repaying loans, and returning value to shareholders are the underpinnings of every corporate renewal project. And while non-certified professionals outnumber those who are certified, individuals who have attained certification truly have the leg up. Whether it be in front of a judge or in the final consideration for a deal, having earned a CTP or CTA can make a real difference.

TMA’s certification program began in 1993. Currently, there are 72 CTAs and 342 CTPs. In addition, 54 individuals hold CTP Emeritus designations, and 15 others are Honorary CTPs. Thirty U.S. chapters have certificants. Four other countries currently recognize the certifications: Canada, Mexico, New Zealand, and Switzerland. Europe, Australia, Japan, and South Africa have CTP-affiliated programs.

For this issue, we asked a number of CTPs for their takes on various issues facing the turnaround industry. Leading off, Carlton E. Helming, CTP, of Helming & Company P.C. addresses principles common to every turnaround in “Finding Profit in a Failing Business.” Next, I explain why lenders and entrepreneurs often have different opinions about what constitutes a “bankable company” in “Creditworthiness Is in the Eye of the Beholder.”

Ruediger Mueller, CTP, of Turnaround Consulting and Management International, in “Subchapter V: The Case for Turnaround and Restructuring Trustees,” reasons that turnaround professionals, and preferably CTPs, are best suited to serve as trustees in such cases, given their ability analyze a filer’s chances of successfully emerging from bankruptcy and surviving in the longer term. In “Are Private Lenders Ready for a Recession?” William Snyder, CTP, and several of his colleagues with CR3 Partners note that many industry observers wonder how an anticipated recession will differ from previous downturns, given the hefty increases in private lending over the past 15 years.

Jeffrey R. Manning, CTP, of CohnReznick Capital Markets Securities LLC discusses his concerns with trends he sees regarding independent bankruptcy directors and DIP/stalking horses and developments involving the zone of insolvency. Finally, Brian F. Gleason, CTP, of Phoenix Management Services, who chairs TMA’s Certification Oversight Committee, presents the case in a My View column for why lenders, investors, and others should consider engaging CTPs and CTAs.

If certification is of interest to you and you would like to explore your options for becoming a CTP or CTA, we would love to discuss it with you.

David M. Weinstein, CTP

David M. Weinstein, CTP

Culain Capital Funding

David M. Weinstein, CTP, is a strategic advisor to Culain Capital Funding, a specialty finance company focused on providing working capital solutions for small and midsize businesses. He has more than 35 years of workout and restructuring experience across industries, including retail and consumer goods, manufacturing, automotive, and aviation. His experience as an advisor and creditor has given him an insider’s knowledge of lender and creditor positions, capital sourcing, and workouts and restructuring, in and out of court.

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