What is a liquidation comparison?
It is a model of the amounts stakeholders might receive under a specified liquidation scenario. Asset realisations, costs, timing and legal priorities affect the result and must be stated explicitly.
Restructuring valuation and creditor recovery analysis
Creditor recovery analysis compares how value may be distributed under defined restructuring and liquidation scenarios. It links asset values, costs, liabilities and the proposed financing structure so decision-makers can examine the financial consequences of a plan and its alternatives.
When this service is relevant
This workstream supports negotiations where creditors, shareholders or financiers need a clear explanation of the value available and its proposed distribution. It is also relevant when different assumptions produce materially different outcomes for stakeholder groups.
What the workstream covers
- Build an asset and liability baseline, identifying valuation inputs, security arrangements, estimated realisation costs and the information supporting each assumption.
- Model a hypothetical liquidation distribution using the priority and security treatment reviewed by counsel; distinguish modelled outcomes from actual recoveries.
- Assess continuation or reorganisation value using an approach suited to the business, documenting forecast assumptions, valuation methods and material sensitivities.
- Compare distributions across scenarios and proposed creditor groups, explaining the effects of new money, capital instruments and changes in valuation assumptions.
Prepare for an initial discussion
Provide asset information and available valuation reports, liabilities, security documents, intercompany positions, forecasts and the proposed plan terms. Identify disputed assumptions and the legal questions that affect the distribution analysis.
Questions and answers
Is a modelled recovery a promised payment?
Modelled recoveries are scenario outputs based on stated inputs and assumptions. Actual payments depend on realised value, implementation, creditor arrangements and the applicable legal process.
How are legal priority questions handled?
Counsel reviews the legal treatment of security, ranking and creditor rights. The financial model applies the agreed treatment and identifies assumptions or disputes requiring further legal analysis.
Discuss a restructuring brief
Start with a non-confidential overview. Detailed documents can follow the agreed conflict-check and information-sharing process.
Discuss a restructuring briefEngagements are subject to conflict, capability and jurisdiction checks. Client-appointed counsel directs legal advice, filings and court procedure. Financing, creditor support and court decisions depend on the relevant parties and applicable requirements. Delivery responsibilities, advisory fees and any platform licence are confirmed in the engagement scope.
Capital markets ecosystem
Investment roles, structures and decision criteria
Explore the participants and transaction options relevant to this practice. Each entry sets out a discussion scope, decision checks, a paid engagement starting point and the specialist responsibilities to confirm.
M&A and Restructuring
Debt RestructuringsCME-283 · M&A and Restructuring · Transaction Route
- Ecosystem role
- Transaction Route
- Related asset class
- Private equity
- Instrument context
- Share sale, asset sale or refinancing
Mandate context: private sale, acquisition, restructuring and secondary transactions. The structure and rights are established by the specific transaction documents.
Decision focus: Transaction route, value and execution dependencies.
- Ownership, objectives and transaction perimeter
- Valuation, stakeholder incentives and alternative structures
- Approvals, diligence and completion or restructuring conditions
Scope to discuss: Transaction route assessment, process design and execution support.
Paid engagement entry point: transaction-route feasibility study; followed by process design and execution.
Illustrative GCC scenario: An illustrative cross-border GCC carve-out can compare the sale perimeter, standalone readiness, valuation and separation dependencies before selecting a transaction route. This is a hypothetical decision example.
What should be agreed before a mandate involving Debt Restructurings?
Define the investment or transaction objective, the authorised decision-maker, the evidence available, the requested deliverables and the next approval. Use the decision checks above to identify gaps; agree the workplan, delivery responsibilities and fee terms in writing.
Delivery and specialist boundary: Confirm decision authority, evidence access, conflicts, scope and applicable jurisdiction-specific permissions before execution. Legal, tax, fund-marketing, securities and Shariah questions require the relevant appointed specialist. Capital availability, investment returns and execution dates remain subject to assessment.
Discuss a paid scopeAdvisory
Restructuring AdvisersCME-303 · Advisory · Intermediary
- Ecosystem role
- Intermediary
- Related asset class
- Advisory services
- Instrument context
- Advisory mandate
Mandate context: capital raising, M&A, debt and special situations mandates. The structure and rights are established by the specific transaction documents.
Decision focus: A defined scope and a reviewable decision record.
- Client authority, objective and required deliverables
- Named delivery team, evidence and scope exclusions
- Fees, conflicts, reliance and specialist handovers
Scope to discuss: Adviser selection, diligence coordination and transaction workstream management.
Paid engagement entry point: adviser-scope and diligence-workplan diagnostic; followed by coordinated workstream delivery.
Illustrative GCC scenario: An illustrative UAE acquisition advisory scope can define the transaction lead, decision gates, diligence providers, deliverable ownership and written fee terms. This is a hypothetical decision example.
What should be agreed before a mandate involving Restructuring Advisers?
Define the investment or transaction objective, the authorised decision-maker, the evidence available, the requested deliverables and the next approval. Use the decision checks above to identify gaps; agree the workplan, delivery responsibilities and fee terms in writing.
Delivery and specialist boundary: Agree the provider, qualifications, independence, permission, reliance rights and scope before appointment. Matchpoint's scope can cover adviser selection and transaction coordination. Legal, tax, audit, engineering, insurance, custody, administration, ratings and other specialist conclusions require the appropriately qualified and appointed provider.
Discuss a paid scopeFurther reading on diligence, market frameworks and applicable requirements. These resources do not verify an individual mandate or Matchpoint permission.
