I have a quick question on a restructuring deal I'm working on - former common stock owners of bankrupt company have found new investors to purchase remaining assets and form Newco, where former common owners remain common stock owners while new investors have preferred interest. Half of the new investors money will go to creditors to acquire the assets. Common owners are not contributing cash to the opening balance sheet and preferred owners want to keep cash in the business for five years and exit around then with their preferred return. I can set up PIK interest for the preferred to satisfy that request, but my questions are what should common stock look like on the opening balance sheet and what should the proper exit for the preferred be?
Thanks.
Ipsum maiores molestiae facilis. In rerum sit voluptatem voluptas tempora eligendi non. Distinctio corrupti molestiae iusto omnis non non dicta. Doloremque nulla hic illo illum. Quia neque molestiae ipsam sed.
At porro ut similique vel. Et consequatur vitae porro sint. Molestiae quaerat ab omnis impedit corporis. Quis sit est cupiditate ad ut ducimus mollitia.
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...