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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:
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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.
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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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Specific Capabilities Provided by Aleutian Restructuring Advisors
for Hedge Funds and Private Equity Firm
For Hedge Funds
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Experience and manpower to manage distressed situations on behalf of fund |
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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 |
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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 |
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Negotiation of debt forbearance in exchange for warrants and/or additional fees |
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Management of loan-to-own scenarios |
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Advice on any balance sheet restructuring or potential workout |
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Negotiation of debt for equity swaps (out-of-court, in-court or pre-packaged bankruptcies) |
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Service on creditor’s committees on behalf of the fund's interests |
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Advice on additional deployment of capital for minority positions or acquisitions of troubled companies |
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Technical, operational and financial due diligence for new or follow-on investments |
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For Private Equity Firms
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Advice to managing partners on the pros-pects of distressed portfolio companies to determine if the company or capital structure is viable |
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Experience and manpower to provide pre-emptive restructuring advisory, workout and turnaround services for over-leveraged deals which may be unraveling |
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Negotiation of debt forbearance agreements with creditors to provide portfolio companies addi-tional time to execute turnaround plans and/or return to compliance |
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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 |
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Revised financial projections for the company |
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Assistance with the cash management and sale of assets or subsidiaries of distressed portfolio companies |
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Root-cause analysis of the company’s problems and advice on the strategic and operational changes needed to alleviate these problems |
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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 |
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Freeing private equity firm principals to focus on other portfolio holdings and new investments |
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Principals
| Richard Mgrdechian – Managing Director
Richard Mgrdechian is an experienced financial advisory and management professional with demonstrated results and accomplishments in a variety of distressed situations. He has been involved in the restructuring of over $500 million in bank debt, bonds, trade payables and other liabilities as well as private placements in excess of $50 million.
Over the course of his career, he has held positions as a principal investor in distressed securities, a financial analyst at Bear Stearns, a member of the restructuring advisory team at The Blackstone Group and president of Renwick Corporate Finance, a boutique corporate finance and operations advisory firm. During this time, he performed numerous valuations and analyses of distressed securities, bankruptcies and Chapter 11 reorganization plans and advised clients on a variety of financial and operational issues.
In addition to his work in the financial industry, Mr. Mgrdechian was the founder of two Silicon-Valley startup companies, the second of which was sold to Yahoo in early 2007. He holds a degree in Electrical Engineering from the California Institute of Technology (Caltech), and an MBA from Columbia University.
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| O. James Sterling - Director
James Sterling founded Aleutian Capital Group, a middle market investment and advisory firm, after several years with management consulting firm Booz Allen Hamilton where he led projects in corporate strategy, performance enhancement and operational improvement across a broad range of service and manufacturing organizations.
At Aleutian, Mr. Sterling has evaluated and negotiated the merger and acquisition of numerous middle market companies, business units and spin-outs with a variety of strategic and financial buyers. In addition, he has advised corporate and financial acquirers on key operational issues including merger integration, market strategy, evaluation of new business opportunities and cost reduction methodologies. Prior to his tenure at Booz Allen, Mr. Sterling was with Renwick Capital Management, a hedge fund investing in public equities, real estate and private equity transactions.
Mr. Sterling holds a BA from Boston University as well as an MBA with distinction from Columbia Business School. He is an active pilot, holding an Airline Transport Pilot’s license with a multi-engine rating.
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| James McCullough - Director
James McCullough is an experienced finance and management professional with significant expertise in turnarounds and distressed situations.
In a previous role as general partner of the Renwick Special Situations Fund, Mr. McCullough led numerous engage-ments and investments focused on advising a variety of consumer electronics, technology and telecommunications companies on operational, strategic, financial and turnaround strategies. Mr. McCullough recently served as chief executive officer of AusAm Biotechnologies, a company developing innovative treat-ments for kidney, cardiovascular and infectious diseases, where he helped guide the company through its Chapter 11 bankruptcy filing and was instrumental in the sale of the company’s diagnostic and therapeutic businesses. Mr. McCullough continues to be involved with a variety of technology companies and other ventures.
Mr. McCullough holds a BA from Boston University and an MBA from Columbia Business School. He is an instrument rated private pilot and avid skier. He resides in New York City.
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