How to prepare for Distressed HF SA? (Looking for Reading Material, Etc.)
Accepted an offer a few months ago for a Distressed HF SA role (Cerberus/Oak Hill/Silver Point). That's a broad range of funds and can't give too much more detail for obvious reasons. I want to do my best to get a return offer and am currently looking to prepare for the role. Unfortunately, the space is pretty opaque and there isn't a lot of info/material available to learn from. Do people on here have any advice on reading material, newsletters, etc, or just general knowledge to drop in for me?
Moyer
http://www.distressed-debt-investing.com/
Thank you for the advice. I really appreciate it. Should have clarified, I've already gone through much of the basics. Moyer, that site, the Petition 11 newsletter, etc.
I can drop my entire reading list later if desired (I would need to type it up). But fortunately, you are somewhat mistaken about the opaqueness of the industry; given that bankruptcies are legal proceedings (I acknowledge that corporate distress encompasses far more than in-court restructurings), there is necessarily an abundance of public information within the court docket. Every docket will include some first day declarations, which more-or-less describe the situation / how the company ended up in court; every time the debtor wants to do something outside the ordinary course of business, or any time a creditor wants to stop the debtor from doing something, a motion must be filed to explain the reasoning; if a plan of reorganization is to be passed, a disclosure statement must be distributed, which is supposed to contain all information necessary to inform a creditor prior to voting. I would suggest picking a few high profile cases (or perhaps cases that your firm was involved in) and doing a quick skim through the docket for the important documents (at least the first day declaration and the disclosure statement; besides that, motions that look interesting might be worth a skim. Most other documents are administrative fluff).
Thank you. This was very helpful. I was under the impression that I didn't have the legal aptitude to start reading those documents yet but I will check it out.
Understanding how the liability management transactions in the attached work would be valuable - also understanding Incora, especially if Silverpoint.
https://www.kslaw.com/attachments/000/008/178/original/Revlon%E2%80%99s…
This is overkill but a good reference guide from Wachtell on bankruptcy law related things.
https://www.wlrk.com/webdocs/wlrknew/ClientMemos/WLRK/WLRK.28050.22.pdf
I'd understand how rights offerings work and how backstop parties can get enhanced economics.
Analyst table stakes include being able to make a cap table in excel for presentation and being able to quickly drill down to FCF so coming in knowing how to do that without fucking up gives you some baseline competence in the eyes of your team. Try to dynamically recreate some of the simpler cap tables shown in the first day motions that rameau mentioned.
Thank you for the advice. By drilling down to FCF, do you mean applying various restructuring adjustments and addbacks? Curious what is complex about it otherwise.
Aliquid doloremque corporis totam. At eveniet est perspiciatis velit velit aut. Cupiditate sequi quos nihil saepe. Est nemo reiciendis ut architecto.
Soluta aut qui et blanditiis placeat est. Necessitatibus rerum in laboriosam distinctio. Eius delectus numquam qui.
Quaerat at eos quod. Ut at id aspernatur et. Et nobis deleniti magni facilis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...