Developing Reorganization Plans

Reorganization plans need to accommodate the often conflicting demands of competing constituencies, while preserving and enhancing the company's business values. Gordian Group has many years of experience in creating and negotiating successful reorganization plans. The key approaches that Gordian Group employs to maximize value include:

• Establishment of a stable financial base upon which a reorganization plan can be predicated

• Exploration of capital market alternatives to determine if the plan will indeed maximize value

• Where imminent business failure is a possibility, immediate exploration of merger market alternatives in order to obtain a higher value than a piecemeal liquidation

• Acknowledgement and, to the extent possible, amelioration of the potentially adverse effects the restructuring may have on the business

• Analysis of the rights of other constituencies, including the potential impact of ancillary litigation positions such as fraudulent conveyance or preference actions

• Development of creative strategies and/or reorganization securities that could resolve conflicting requirements of certain constituencies

• Consideration of the liquidity requirements of various constituencies in determining what type of reorganization securities would be most appropriate given the circumstances of the case