How can I learn restructuing modelling and case studies?

I'm a finance student looking to complete my dissertation on a restructuring project as it's challenging, interesting but also worth more grades wise. I understand the reason guides are scarce is because restructuring is so scenario specific and so it's hard to follow the playbook. 

However, I feel I don't even understand the modelling fully nor how to do the captables. I would really appreciate if anyone had any idea if there were any guides on the basics (something similar to the BIWS guide), where I could practice looking at cases and then figure out what my own dummy company could do. 

I tried looking at (restructuring interview dot com)  but it seems to be for people trying to interview, whereas I'm looking to learn more and practice modelling (I understand the basic theory thus far).

Any help would be super appreciated  and I'd be very grateful.

Thank you!

4 Comments
 
Most Helpful

usually you do a 13 week cash flow statement, and then you take the valuation as it is, and start playing scenarios of debt reduction

for example, secured lenders take only 98% of their debt meanwhile junior creditors get their claims reduced to 40%, this would mean that the company value may be 400 higher as an example. Would they agree? Are they better off than in a normal bankruptcy scenario where liquidation follows the seniority?

what about junior getting equity for their $200 in claims when equity is currently traded at 0.01$. how many bew shares to issue

open any restructuring guide and they'll tell u what usually is done on BX cases and try to model the most traditiona scenarios.

incentives trumph ethics
 

To dive into restructuring modeling and case studies, here’s a structured approach based on the most helpful WSO content:

  1. Core Resources for Learning Basics:

    • Stephen Moyer's "Distressed Debt Analysis": This book provides a comprehensive overview of the bankruptcy system and the mechanics of debt. It's a great starting point for understanding the theoretical framework of restructuring.
    • Houlihan Lokey Case Study: This is a highly recommended resource for understanding restructuring scenarios. You can find it here: http://www.HL.com/library/bsttcacs.pdf</a">HL Case Study.
    • Distressed Debt Investing Blog: While it leans towards valuation and investing, this blog is an excellent resource for staying updated on distressed companies and understanding market perspectives. http://www.distressed-debt-investing.com/</a">Distressed Debt Investing Blog.
  2. Technical Skills Development:

    • Cap Table Modeling: Start by learning how to create cap tables, which are essential in restructuring. A cap table outlines the debt structure of a company, starting with the most senior debt (e.g., term loans, secured debt) and moving down to junior debt (e.g., mezzanine or high-yield bonds). If you're unfamiliar with terms like secured/unsecured or senior/junior debt, spend time researching these concepts.
    • Modeling Practice: Access resources like Reorg Research, which offers pre-built waterfall models and recovery analysis templates. These can help you understand liquidation waterfalls and recovery scenarios.
  3. Practical Case Studies:

    • PACER Database: For real-world bankruptcy cases, PACER (Public Access to Court Electronic Records) is invaluable. It contains court filings for companies undergoing bankruptcy. While access may cost a small fee, it’s a goldmine for understanding real restructuring scenarios.
    • Reorg Research: This platform provides detailed case studies and models for distressed companies. If you have access, it’s a great way to practice with real-world examples.
  4. Additional Recommendations:

    • WSO Restructuring Package: While opinions on its quality vary, it’s worth exploring as it may provide structured guidance for beginners.
    • University Resources: Check if your university library offers access to platforms like Bloomberg, SMI, or ADI for pricing and yield data, as well as ThomsonOne or CapIQ for credit research.
  5. Hands-On Practice:

    • Create a dummy company and simulate a restructuring scenario. Use the cap table structure to analyze debt hierarchy and simulate recovery scenarios using a liquidation waterfall model.
    • Focus on key triggers for restructuring, such as large upcoming maturities, cash flow concerns, or covenant breaches. Analyze how these factors impact the company’s financial health and propose solutions.

By combining these resources and approaches, you’ll build a solid foundation in restructuring modeling and case studies, which will not only help with your dissertation but also prepare you for future roles in finance. Good luck!

Sources: https://www.wallstreetoasis.com/forum/investment-banking/how-to-prepare-for-restructuring-technical-questions?customgpt=1, How to Prepare for Restructuring Technical Questions, Restructuring / Distressed Debt Modelling, What are your favorite restructuring resources?, Law School or Classes for Restructuring IB / Distressed / Credit investing roles

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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