Restructuring and liquidation services
The challenge
Restructuring provides investigation, restructuring, turnaround and insolvency advice and services to underperforming and financially distressed companies, including investments funds and management companies, their stakeholders and advisors.
We use our expertise to identify the causes of the difficulties, work collaboratively to identify the best strategy for business recovery and then develop an optimal financial and/or operational restructuring solution. We will then support the implementation of the optimal solution through a solvent or insolvent route.
Deloitte restructuring and liquidation services
Restructuring of distressed funds
At Deloitte, the restructuring team has the ability to draw on individuals with considerable industry experience and with broad and varied backgrounds to work with funds to help manage distressed funds and other troubled aspects of portfolios. We regularly advise on a wide range of issues facing the industry in addition to acting in formal capacities.
Assisting with the creation of alternative structures to deal with adverse liquidity conditions including the implementation of lock-ups or the use of side-pocket structures to isolate distressed assets.
- Advising in relation to the use of gates, suspension of redemptions and/or of NAV calculations;
- Formulating workouts and informal restructurings;
- Assistance with the downsizing of portfolios;
- Advising on appropriate liquidation strategies to preserve/maximise investor value;
- Project managing and implementing the solvent wind down of funds, across multiple jurisdictions;
- Conducting due diligence on distressed debt portfolios, especially bank divestures;
- Acting in formal capacities e.g. Liquidators, Trustees;
- Assisting with the identification of opportunities for investment in distressed companies;
- Working with underperforming portfolio companies by undertaking business reviews or outlining exit strategies;
- Undertaking operation and performance reviews.
Specifically, Deloitte has an outstanding record of managing and implementing complex structured finance restructuring transactions and advising both companies and their stakeholders in such transactions. We hold a market leading position in restructuring Structured Investment Vehicles and are recognised as global leaders in securitisation accounting.
Wind down and closure support (or exit strategy)
We provide advice services on strategies when a subfund, fund or management company is to be wound down and closed. We work co-operatively with management and other stakeholders to evaluate the closure of underperforming activities. We can review the closure options, devise a withdrawal strategy and plan and manage the implementation.
Our services provide an efficient strategy that does not jeopardise reputation or stakeholder relationships, and at the same time allows management to focus on their portfolio management.
We provide a comprehensive solution which:
- Minimises risk;
- Injects pace;
- Optimises management focus;
- Provides easy access to specialists;
- Brings an objective perspective;
- Maximises residual value.
The team provides a strong blend of practical, commercial, operational and financial skills as well as offering full project management and implementation of our plans. We liaise with the firm's specialists in functional areas as required.
Liquidations - Solvent liquidation
The appointment of a Liquidator is subject to the prior approval of the CSSF. In this case, Deloitte can help achieve the entities' main objectives to:
- Realise complex assets of the investment fund and sale of illiquid assets on the secondary market;
- Resolve all outstanding matters of the company, including the settlement of claims of all creditors;
- Distribute the surplus assets to the shareholders or unitholders;
- Our team can assist in all stages of the solvent liquidation process. We act as liquidator of solvent companies initiating and finalising liquidations in a timely and appropriate manner.
Liquidations - Insolvent and judicial liquidations
Liquidation provides a mechanism for the formal winding up of an investment fund in a controlled manner.
A Liquidator is appointed by the Court and will aim to:
- Realise complex assets of the investment fund and sale of illiquid assets on the secondary market;
- Distribute the funds realised, according to the statutory order of priorities among the company's creditors.
A Liquidator may:
- Perform extensive investigations into failed companies;
- Examine the conduct of a company’s directors and senior management in order to establish the reasons for its failure.
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