A pragmatic approach, combined with practical experience and creative strategies to maximize successful outcomes.

A pragmatic approach, combined with practical experience and creative strategies to maximize successful outcomes.

Restructuring & Bankruptcy Services

Stout professionals provide the full spectrum of restructuring and bankruptcy services. Our services include special situations investment banking, operational restructuring, bankruptcy advisory, and interim management services. Our engagements are typically staffed with multidisciplinary teams of senior professionals with expertise across the full range of relevant restructuring services, in addition to investment banking industry specialists, where appropriate. We aim to maximize successful outcomes for our clients by taking a pragmatic approach, combining practical experience and creative strategies that address the nuances of each case.

Special Situations – Investment Banking Services

Stout provides customized special situations solutions tailored to meet the needs of middle-market clients facing inflection points, from capital structure issues to other liquidity/financial matters. Our services address the full range of issues that may cause financial distress:

  • Negotiating waivers, modifications, and amendments to credit agreements
  • Developing and executing capital markets solutions
  • Divesting noncore assets to fund the business and/or facilitate a deleveraging
  • Developing and executing comprehensive deleveraging transactions
  • Selling the distressed company, to the extent such a transaction maximizes value

Corporate Recovery Services

Stout’s corporate recovery professionals assist management with both financial and operational issues so that they can reassure key constituencies that necessary actions and decisions are occurring to stabilize the business. Stout possesses deep expertise in many industries, which enhances our ability to quickly identify key issues and determine appropriate actions immediately on behalf of our clients. Stout routinely performs the following activities:

  • Assist in the reorganization process and analyze the companys proposals to determine the impact on unsecured creditors
  • Analyze future potential cash flows
  • Evaluate inventory levels in context of the competitive market
  • Evaluate disposition alternatives
  • Identify any intangible assets and/or business enterprise value
  • Assess feasibility of capital structure
  • Perform valuation analysis
  • Determine liquidation vs. reorganization recoveries
  • Perform solvency analyses

In addition to the services outlined above, Stout also provides a full suite of financial advisory services to lenders and unsecured creditors of distressed entities.

Debtor Advisory Services

Our team works closely with existing management and immediately begins to obtain an understanding of the companys operations and issues. 

Alternatively, our professionals can act as interim management if the situation dictates, including chief financial officer (CFO), chief restructuring officer (CRO), or chief operating officer (COO).

We analyze the company's current financial status and perform a review of the current operational plan, with a focus on accelerating implementation and identification of additional cost savings opportunities.

  • Develop operational metrics to effectively evaluate individual business segments and facilities based on historical and projected performance
  • Perform industry benchmarking to provide “best-practices” comparisons to assist in identifying additional initiatives to maximize the company’s operational and financial performance
  • Evaluate immediate cash flows and analyze and/or develop the company’s 13-week cash flow projections
  • Analyze and review revenue models for each of the company’s operating segments
  • Conduct a fixed and variable cost analysis to determine savings options
  • Prepare preliminary report of financing and restructuring alternatives (Preliminary Review and Assessment [“PRA”])

Creditor Advisory Services

To ensure the best results for creditors, our core team will include professionals with bankruptcy, corporate recovery, investment banking, valuation, due diligence, forensic and investigative accounting, and other relevant experience and expertise. Our approach is to immediately deploy a team that will obtain an understanding of the company’s operations, as most turnaround/workout situations are not recognized by management until the company is having significant cash flow problems. Unsecured creditors are usually the last to be informed of the severity of the situation.

We analyze the debtor’s plan for reasonableness and feasibility, understand the effect of a sale of the bankrupt estate, and/or may have to determine the probability of success of a third-party plan that intends to bring new capital.

Other actions include:

  • Evaluate the company’s current financial status
  • Evaluate the potential refinancing and/or reorganization alternatives available to the company and determine the implications for any such reorganization including the impact on the company’s stakeholders, including unsecured creditors
  • Evaluate immediate cash flows and analyze the company’s 13-week cash flow projections
  • Evaluate and identify potential alternative sources of recovery, if any
  • Begin review of liens held by secured lenders
  • Analyze and review revenue models for each of the company’s operating segments
  • Begin financial analysis of and determine the profitability of each operating segment
  • Conduct a fixed and variable cost analysis to determine savings options
  • Report to and advise the client on all of the above

Bankruptcy Proceedings

For situations in which bankruptcy is an appropriate tool or the company has already filed for relief, Stout professionals provide an array of bankruptcy-specific services to our clients. We regularly serve as financial advisors and as interim management during court proceedings. Our services include: 

  • Development of solutions to address cash shortfalls
  • Development, negotiation, and execution of plans of reorganization
  • Negotiations with secured and unsecured creditors
  • Analysis of collateral value or equity cushion to address adequate protection issues
  • Cram-down/fair and equitable analysis, feasibility analysis, and lease rejection analysis

Cross-Border Insolvency

Stout has extensive experience with multinational companies and investment funds in navigating simultaneous insolvency proceedings in multiple jurisdictions. Our team has experience in the offshore jurisdictions working closely as private funds, management companies, trusts, and special purpose vehicles (SPV) to handle all aspects of the contemplation of insolvency, management of creditor rights demands, and maneuvering of insolvency administration between onshore and offshore administrations. Our services include:

  • Service as a receiver (domestic or foreign)
  • Service as the financial advisory to a liquidator or U.S. Bankruptcy Trustee
  • Appraisal/valuation expert in contemplation of insolvency or litigation
  • Solvency/fairness opinions
  • Joint official appointment with foreign liquidator/administrator
  • Service as independent director
  • Special situations investment banking
  • Solutions to address in-court/out-of-court restructuring
  • Management of reorganization plans
  • Negotiations with secured and unsecured creditors

Fiduciary & Trustee Services

Our experience in this area involves every aspect the job requires to identify, recover, and monetize assets for the benefit of creditors. Our activities include investigating and reconciling claims, objecting to certain claims, pursuing Class 5 causes of action, litigation claims, and collecting dated accounts receivables, among others.

Our team of professionals has served in the following roles:

  • Chapter 11 Trustee
  • Chapter 7 Trustee
  • Receiver
  • Post-Confirmation Trustee
  • Litigation Trust Trustee
  • Liquidating Trust Trustee
  • Plan Administrator
  • Federal Trade Commission Monitor
  • Plan Agent

Forensic and Litigation Services

Stout professionals are also often retained by a court-appointed trustee to execute specific tasks, such as handling forensic accounting services or providing litigation-support services. As part of the bankruptcy process, we are often called on to deliver litigation-related assistance, such as:

  • Analysis of transfers in support or defense of fraudulent conveyance actions
  • Preference analysis
  • Preparation of fairness and solvency opinions
  • Expert witness services