Deteriorating Financial Performance. Covenant Violations. Impairments. Defaults. Creditor Committees.
Whether you are a Borrower of Bondholder, a distressed financial situation causes more than aggravation; it can set off numerous triggers and procedures in internal compliance, valuation, and legal that can result in adverse Board level action.
Hands on Experience
TENBAR GROUP has direct experience in turnarounds, workouts, debt restruct-uring, distressed valuation, asset sales, and manage-ment replacement.
TENBAR Founder and Senior Managing Partner Barnet Sherman has managed multi- billion dollar municipal bond portfolios and is recognized for his high yield sector expertise in healthcare, higher education, senior care, senior living, economic development, CDDs and TIFS.
Bankruptcy & Creditor Committee
Drawing on his experience in testifying in both US Bankruptcy Court and SEC Administrative Court, he has successfully represented bondholder interests on Creditors’ Committees with 100% or majority recovery while preserving the ongoing services of the borrower.
Academia & Publications
In his position as an Adjunct Professor of Corporate Finance and Accounting at Boston University, he brings credibility, expertise, and independent perspective to every engagement. Completing the Harvard Law School Program on Negotiation, he received certification from that program.
Published in the field, Mr. Sherman has numerous articles on municipal bankruptcy. Finally, in his role as a Board member of a nonprofit senior care and living facility, serving on its finance committee, he is actively involved in the decisions guiding the strategy of the business.
His undergraduate degree is from Syracuse University, Maxwell School where he was admitted to Pi Sigma Alpha, the political science honor society. He earned his Master’s in Public Administration from Columbia University, School of International and Public Affairs.
Subject Matter Expertise on Distressed Situations
Tenbar Group understands the needs of all stakeholders as well as the complexities of public purpose entities or private companies under financial duress. We work with:
Board of Directors
We offer an objective assessment and recommendations specifically focused on your matter. Being independent, we help stakeholders work towards a tenable, long-term solution.
Healthcare | Senior Care | Senior Living | Economic Development
Community Development Districts | Tax Increment Financings
The 4 Top Level Issues with Distressed Credits
Time Consuming. Since taking swift action is often critical in expediting resolution, there are very likely to be numerous meetings with all stakeholders. Additionally, creating and following regular reporting to assure defined goals and outcomes are being met consistent with a set timetable, means even more time. Investment professionals must balance between staying involved but still performing their primary responsibilities to shareholders and participants.
Valuation. For Funds and Institutional Portfolios, distressed bonds hurt performance, reduce dividends, skew return ratio measures, create watch-lists, and cause quarterly and annual reports to shareholders to be amended.
Impairments & Non-accruals. For insurance company portfolios, a distressed holding generates impairment and rebuttal reports, a potential Held For Sale label with possible OTTI write downs. Mutual funds may have to put bonds on non-accrual status or back out existing accrued interest.
Public Stakeholder Actions. Because they are public purpose entities, when a municipality, agency or 501(c)(3) borrower finds they can no longer support outstanding debt, it creates another level level of complexity--and tension. Bondholders and public stakeholders likely differ as to the best course of action.
“Mr. Barnet Sherman is to be complimented for his diligence and thoroughness to understand and elucidate the complex issues of Chapter 9 Bankruptcy.”
Hon. Thomas B. Bennett (Ret.)
Former Chief US Bankruptcy Court Judge
Northern District of Alabama, Southern Division
Justice on $4.23 billion Jefferson Co. Alabama Bankruptcy
“Among the investor witnesses, I found…Sherman to be very credible. [Others] were generally credible or…were only marginally credible.”
Hon. James T. Kelly (Ret.)
SEC Administrative Law Judge
In the Matter of Public Finance Consultants, Inc., Robert D. Fowler, Dolphin and Bradbury, Incorporated, and Robert J. Bradbury, A.P. File No. 3-11465, Initial Decision Release No. 274 (February 25, 2005) (initial decision of administrative law judge).