Companies contemplating a Chapter 11 filing will experience many demands and requests for information beyond the normal requirements of day-to-day operations. Our professionals provide end-to-end services, delivering effective and efficient solutions to assist management in its preparation for its Chapter 11 filing. Our experience allows us to define key roles, responsibilities, and timelines to meet those needs. We leverage skilled practitioners and tested technology to build an efficient framework that is tailored to a company’s organization and reporting structure to enable management to focus on running the business, assist with the preparation of the initial external reporting requirements, manage supplier relationships, and build processes that can be deployed at scale to facilitate operational continuity.

When helping clients prepare for a Chapter 11 filing, our services typically include:

• Implementing invoice cutoff procedures, including recommendations for changes to accounting systems to account for pre- and post-petition liabilities
• Establishing cash management procedures to track all payments made post-filing
• Delivering training for finance and operational leaders on the Chapter 11 process
• Developing external communications for suppliers, employees, and other stakeholders
• Assisting with vendor management and negotiations
• Monitoring and reporting of cash flow
• Preparing the requisite analyses to support first-day motions
• Developing the creditor matrix
• Preparing a framework for evaluating executory contracts for inclusion in filings and analysis for eventual disposition
• Evaluating information management systems for Chapter 11 requirements
• Gathering and organizing the data required for the initial operating report to the US Trustee, including the following:
  • Schedules of Assets and Liabilities (SOALs)
  • Statement of Financial Affairs (SOFA)

During the Chapter 11 process, Deloitte T&R’s Chapter 11 support services include:

• Developing processes for reporting to the court, US Trustee, and constituents
• Preparing monthly operating reports (MORs)
• Implementing of GAAP as it relates to ASC 852, “Reorganizations”
• Reporting to external parties and their financial and legal advisors, including the Official Committee of Unsecured Creditors (UCC)
• Analyzing estimated claims by class to help understand potential recoveries
• Reconciling filed claims to assist company’s bankruptcy counsel with evaluating how they should be treated for disposition
• Analyzing pre-petition payments made for potential preference actions
• Analyzing executory contracts for disposition, including potential cure payments required for contracts to be assumed and potential damages for contracts to be rejected (including assessing the limitations on the damages afforded to landlords on rejected real estate leases)
• Assisting with the development of various aspects of the plan of reorganization and disclosure statement, including the liquidation analysis, creditor recovery waterfall, and prospective business plan

At Deloitte T&R, part of our pre-filing strategy process is to work with management as it evaluates the achievability of various structures and frameworks of a potential plan of reorganization. Our fundamental belief is that how your company approaches the bankruptcy process is crucial to your successful restructuring. We work closely and collaborate with your legal team and other advisors to develop, negotiate, and champion the plan of reorganization through the confirmation process.