Sometimes loans or investments become challenged. Alderney Advisors helps lenders find the optimal method of recovering their investments, whether through business restructuring, sale, or liquidation. Creditor organizations have special needs and rights to ensure their interests are protected in times of financial or industrial turmoil – the Alderney team has a keen understanding of which levers can be pulled and how far other constituents can be pushed to protect those interests. We serve lenders directly, or through counsel, as well as their borrowers to provide the financial and operational transparency necessary to move forward.
Alderney partners with lenders or borrowers to critically analyze the situation and the sources of funding available. The Alderney team is well versed in developing strategies enabling cash conversion acceleration and cash disbursement deceleration. Our professionals are close to the markets and can readily assess opportunities and recommend sustainable alternatives.
Lender Strategic Expansion
Engaged by a lender to support its strategic expansion of its asset-based loan offerings to a riskier collateral category. Reviewed key borrower information to confirm contract amounts, contract status, and progress payments. Conducted field exams to assess status of customer program launches, visually inspect assets, and determine completion percentage. Prepared comprehensive tracking schedules. Analysis led lender to approve the financing.
Restructuring and Turnaround Advisory
If a situation is particularly dire and the luxury of time is not available, our team is adept at making critical assessments of the balance sheet, looking for liquidity and collateral which could provide the necessary breathing room to properly orient the business. Liquidity could be improved by a refinancing, a forbearance agreement, plant closings, headcount reductions, supply chain initiatives, sale of non-core assets, or any other number of strategic options that have deployed successfully in the past. When in-court restructuring is required, we advise secured lenders and their borrowers to arrive at the best alternatives for all constituents; our team has extensive experience with 363 restructuring solutions in Federal Bankruptcy Court.
Engaged to support a company and its secured lender in effectuating the operational wind-down and liquidation of a significant manufacturing facility in the midwestern US. Took control of the plant immediately after operations ceased, led the team of remaining employees, safeguarded assets, arranged for conversion and sale of inventory to critical customers, and prepared machinery and equipment for sale. Maximized lender’s recovery and ensured a well-designed and executed exit for shareholders.
In today’s heightened regulatory environment, a reliable quality of earnings analysis is paramount to any transaction financing – lenders require transparency as to whether a borrower’s earnings and cash flow will be sufficient to service its debt. Lenders rely on Alderney for quality of earnings reports and transaction due diligence. Alderney’s comprehensive due diligence approach involves digging deep beyond the reported financial statement numbers to derive key insights that enable lenders to make well-informed investment decisions, mitigate risk, avoid surprises, and enhance credibility with third-party constituents.
Lender Quality of Earnings Support
Supported a lender’s financing decisions in connection with two contemplated acquisitions by a private investment firm. Conducted comprehensive financial due diligence of the target companies, including quality of earnings, cash flows, and net assets analyses. Prepared and provided lender access to comprehensive financial due diligence reports. Both transactions were financed and closed successfully.