Restructuring Advisory

Aleutian Restructuring Advisors provides financial advisory services to hedge funds and private equity firms to help these groups maximize the value of distressed investments or credits currently within their portfolios.

The current uncertainty in the economy and credit markets has made it considerably more difficult for troubled companies to obtain financing. This situation will ultimately result in the liquidation or restructuring of numerous companies in which hedge funds and private equity firms have invested over the past several years. Decisions portfolio managers make regarding these investments will have a significant impact on the overall performance of their funds. The goal of Aleutian is to provide them with expert advice on how to best manage these troubled situations and maximize their ultimate return on investment.

In general, we provide the following services:

• For Hedge Funds: Aleutian advises on PIPE deals, preferred or common stock positions, mezzanine or bridge debt, and other credits or investments with regard to holding, selling, converting or working-out the position to minimize loss or maximize potential upside.
  
  
• For Private Equity Firms: Aleutian provides pre-emptive restructuring advisory, workout and turnaround services to help financial sponsors preserve value in over-leveraged or under performing situations which they may not have the time or expertise to manage.

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For Hedge Funds Experience and manpower to manage distressed situations on behalf of fund   Advice on existing PIPE deals that may currently be under water with regard to selling or conver-ting the position to minimize any additional loss, holding the position to preserve the liquidation preference in the event of a bankruptcy or other workout, or holding the position in order to con-vert at a later date if the business prospects look promising   Evaluation of business prospects of existing investments or credits (especially for smaller companies with limited coverage) to determine if the company or debt is viable   Negotiation of debt forbearance in exchange for warrants and/or additional fees   Management of loan-to-own scenarios   Advice on any balance sheet restructuring or potential workout   Negotiation of debt for equity swaps (out-of-court, in-court or pre-packaged bankruptcies)   Service on creditor’s committees on behalf of the fund's interests   Advice on additional deployment of capital for minority positions or acquisitions of troubled companies   Technical, operational and financial due diligence for new or follow-on investments

For Private Equity Firms Advice to managing partners on the pros-pects of distressed portfolio companies to determine if the company or capital structure is viable   Experience and manpower to provide pre-emptive restructuring advisory, workout and turnaround services for over-leveraged deals which may be unraveling   Negotiation of debt forbearance agreements with creditors to provide portfolio companies addi-tional time to execute turnaround plans and/or return to compliance   Advice on any balance sheet restructuring or recapitalization, and negotiation of palatable debt for equity swaps on behalf of the firm during out-of-court, in-court or pre-packaged bankruptcies   Revised financial projections for the company   Assistance with the cash management and sale of assets or subsidiaries of distressed portfolio companies   Root-cause analysis of the company’s problems and advice on the strategic and operational changes needed to alleviate these problems   Due diligence and strategic advice regarding additional deployment of capital to troubled companies including advice regarding valuation and deal structure for new or follow-on investments   Freeing private equity firm principals to focus on other portfolio holdings and new investments

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