Bankruptcy & Corporate Restructuring Resource Center
US Corporations, encouraged by a decade of historically low interest rates, had raised record levels of debt. In December of 2019, US corporate debt levels had ballooned to $10 trillion, a record 47 percent of the overall economy.
With leverage comes risk and a greater the likelihood that previously healthy businesses will begin to breach their debt covenants.
It a typical year, thousands of businesses in the United States file for bankruptcy. We expect to see a further increase in bankruptcies globally. In some cases, these bankruptcies will result in the closure and complete liquidation of the business. In others, bankruptcy will provide a restart opportunity to escape burdensome leases, agreements and revitalize a viable business.
Companies facing financial distress and turmoil are operating under enormous pressure, facing complex and confidential matters, and typically face time sensitive deadlines. Ocean Tomo presents a White Paper Series on Corporate Restructuring & Bankruptcy. You can download first two papers in the series focused on Corporate Borrowing Business Loan Foreclosure and Fresh Start Accounting below.
Across the firm, Ocean Tomo serves the needs of companies, outside counsel, creditors and counterparties impacted by business failure. We help companies in the context of bankruptcy and insolvency related litigation , provide intangible asset valuation and related consulting to help companies leverage the strategic value of their IP assets and support corporate restructuring, by harnessing their IP portfolios to generate value upon exit from the transaction, often as a liquidity mechanism or as a useful tool for enhancing the creditworthiness of the exit itself.
Our bankruptcy and insolvency engagements have included, but are not limited to, the following:
- assessing the causes of financial distress, bankruptcy and/or insolvency
- performing analysis and evaluation of potential fraudulent conveyance and preferential transfer, clawbacks and other matters of asset recovery
- performing valuations of businesses and/or their remaining assets, including intellectual property (IP) and other intangible assets
- valuation to support the allocation of sales proceeds
- advisory and valuation to support structuring and transfer of IP rights to be used as security for new debt
- evaluating the business operations of a company out of compliance with loan requirements
- investigating fraud and other misconduct by management or employees
- assessing the conduct of third parties that potentially caused, or failed to prevent, the financial hardship of the distressed company