Financial Advisory Services
Charter Oak provides a full range of financial advisory services to tort claimant committees in chapter 11 bankruptcy restructurings. We limit our engagements to the representation of tort claimants. On several occasions, we have jointly represented tort claimant committees and the legal representative for future tort claimants. However, to avoid any conflicts of interest with positions we have taken in various cases, Charter Oak has never solicited nor accepted an engagement with a debtor in a chapter 11 tort bankruptcy.
Our team of professionals have specialized knowledge and skill sets in corporate finance, investment banking, forensic accounting and finance, bankruptcy law, tax law and database development, implementation and search technologies that enable them to address comprehensively the multi-faceted issues that arise in tort bankruptcies
Valuations are an important part of the bankruptcy process and are often relied upon during negotiations of consensual reorganizations or to support sales prices if businesses are sold to third parties. Our financial experts have decades of experience performing in-depth valuations of complex assets and businesses within the context of chapter 11 tort bankruptcies. Charter Oak has a strong track record of developing and defending valuations that have enhanced asset recoveries to bankruptcy estates.
Charter Oak’s professionals have the skills and seasoned judgment to develop highly credible financial models that serve multiple purposes in chapter 11 proceedings, including capital structure analyses, valuation of debtor businesses, and analyses of debtor financial budgets and projections.
Capital Structure Analysis
Charter Oak performs analyses of debtors’ prepetition capital structures as well as proposed changes in those capital structures as a result of a restructuring. Capital structure analysis is particularly important where a tort committee is receiving equity or debt as consideration in the restructuring; in those cases, Charter Oak is very diligent in negotiating a post-reorganization capital structure that is strong enough to ensure that the tort trust will receive the value of its bargain.
Charter Oak is the financial advisor to multiple trust advisory committees and advises these clients on a variety of financial matters unique to personal injury trusts, such as analyzing asset values and asset dispositions. We often serve as financial advisor to creditor committees in reorganizations that result in the creation of the respective trusts, giving us additional perspective and ensuring that their fiduciary objectives are met.
Plans of Reorganization
Negotiated plans of reorganization are complex and time consuming, requiring both legal and financial knowledge. Charter Oak assists tort committees and their counsel in negotiating the terms of plans of reorganization, and also reviewing and critiquing of disclosure statements and other ancillary documents necessary for the reorganization. With our experience and specialized team of professionals, we can quickly and confidently navigate the many moving parts involved.