Phoenix’s primary objective in Restructuring Advisory engagements is to assist clients in seeking an agreement with creditors and suppliers that is both serviceable and viable within the company’s operating capabilities. We seek to obtain terms and conditions that will allow the company to resume its normal operating conditions and yet service its commitments throughout the terms of the agreement.

Our focus in such assignments is to seek a negotiated agreement with all parties through a comprehensive restructuring plan that can be supported by the company’s financial capacity and its ability to meet all obligations over the life of the agreement.

It is our experience that a creditor’s level of comfort and willingness to support a restructuring plan is closely related to the degree of transparency with which the process is conducted. Such comfort is normally achieved by carefully preparing a realistic and viable business plan which might include frequent consultations and input from creditors.

We also believe that bankers and suppliers should be viewed as partners in any restructuring effort. Failure to do so is likely to cut-off the company’s ability to access the financial and capital markets in the future.

Not surprisingly, many of the steps that are normally part of a Restructuring Advisory assignment have similar characteristics to those of Financial Advisory or Mergers & Acquisitions assignments. The customary scope of work of a Restructuring Advisory assignment would include the following steps:

• Develop in-depth knowledge and understanding of the company’s operations, financial statements, organizational structure, legal, labor and tax liabilities and debt profile.

• Tailor a detailed operating and financial model that is to be used to determine the company’s economic and financial performance under a number of different market and macro-economic scenarios.

• Assist management in developing a complete business plan that is coherent with market conditions and that is compatible with the company’s operating capabilities.

• Determining the company’s debt capacity as a result of the operating conditions defined by the business plan.

• Develop a restructuring plan that is compatible with the company’s debt capacity and that is supportable by the company’s business plan. This restructuring plan is likely to include the lengthening of current debt terms, reduction of interest rates, partial conversions of outstanding debt into equity as well as obtaining additional capital and funding commitments from investors and creditors.

• Negotiate the terms of the restructuring plan with creditors and suppliers.

Redefine and achieve a capital structure that is compatible and supportable by the operating capabilities of the company, while at the same time maintaining a working relationship with providers of financing.