Deteriorating Financial Performance. Covenant Violations. Creditor Committees. Trustee Indemnification.
Just one distressed investment in your portfolio causes more than a lot of 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 CAPITAL has direct experience in company restruc-turing, distressed valuation, asset sales, and management replacement. Having taken the stand for testimony in both Federal Bankruptcy Court in a Chapter 11 proceeding and Administrative Court through a SEC action, both of which were resol-ved favorably for inves-tors, TENBAR CAPITAL successfully led Senior Creditor Committees in three bankruptcies resulting in recoveries of 75% to 100% of principal.
Subject Matter Expertise on Distressed Situations
Tenbar Capital offers an objective assessment prepared by a team of financial, legal and operational professionals selected specifically to focus on your matter. This team understands the needs of all stakeholders as well as the complexities of public purpose entities or private companies under financial duress. By being independent, we can help stakeholders work towards a tenable, long-term solution.
The 4 Top Level Issues with Distressed Credits
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.
Insurance Company Impairments. For insurance company portfolios, a distressed holding generates impairment and rebuttal reports, a potential Held For Sale label with possible OTTI write downs.
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.
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.