The Key to Successful Corporate Restructuring
Engaging an oil and gas consulting firm during a time of financial distress can seem like an added expense at time when extra investments are not welcome. But, they may be the game-changer a company needs to emerge more resilient and better adapt to commodity price fluctuations and/or market shocks when they occur.
Restructurings and corporate reorganizations can achieve the present needs of a distressed company or a company trying to adapt to a changing market. This requires substantial and prompt modifications to debt terms, financial plans and business operations. Oil and gas consultants have the ideal insight and experience to advise and assist companies through difficult decision-making, reorganizations, transaction details, or financial and legal negotiations.
Take RDT Inc. for example, a supplier of oil/gas drilling tubular tools to operators and drilling contracts, which engaged Opportune LLP to serve as Chief Restructuring Officer (CRO) and to evaluate and pursue strategic alternatives for the business in a highly distressed situation. Activities included cost savings initiatives, assessing and reconstituting management and positioning the company for sale. (CLICK HERE TO VIEW THE FULL CASE STUDY)
Oil and gas consultants with restructuring experience can maximize value for constituents in a distressed situation, and think strategically to deliver results, both operationally and financially, through hands-on, actionable implementation to meet the challenges of business turnarounds.
Specifically, energy consultants drive value and recoveries by assisting stakeholders and companies in the following capacities:
- DIP raising and negotiations
- Aggressive litigation, including against make-whole payments and value leakage
- Identification of and capturing of unencumbered value
- Analysis of value flow through complex organizational structure
- Implementation of competing reorganization plans
- Board advisory
- Cash tax and attribute analysis
- Creation and analysis of cash flow forecasts
- Reduction of overhead and operational cost structure
- Shedding of non-essential operations and footprint rationalization
- Working capital and liquidity management
- Assessment of long-term financing options
Ultimately, and in addition to the aforementioned experience, oil and gas consultants bring a full suite of restructuring and related services to the table that include experience with debtors, creditors and equity holders.
Challenges and changes in the market are inevitable, but companies can feel confident in deliverables from oil and gas consulting firms that understand the situational sensitivities inherent of the industry as have they continue to see companies through the storm.