- Jeff Sands
- Corporate Turnaround Artistry
- b03.xhtml
- 13-week cash flow forecast (13WCFF), 49, 78f–79f, 80, 133
- 13-week cash flow, impact, 83
- 401k deposits, transmission (avoidance), 178
- 401k trust funds, absence, 8
- 941 payments, avoidance, 177
- 941 withholding problem, 173
-
- A and B Notes, 255
- Absolute Priority of Debt Rule, 16, 193
- Accounting, 287–288
- issues, bank underwriter comprehension, 195
- TMA exam, 42
- Accounts payable, control, 253
- Accounts receivable aging reports, 133
- Acquisitions, history, 164
- Adaptation failure (business problem), 21
- Add-on acquisitions, 165
- Administrative claims, treatment, 233
- Adversaries, impact, 132
- Affidavit of Personal Financial Condition, signing,
113
- ALLL coverage ratio, 128
- Alternative lenders, review, 119–121
- Amortization periods/terms, modification, 255
- Appraisals, placement, 270
- Asbestos claims, impact (example), 226–227
- Asset-based line of credit (ABL LOC), 95
- Asset-based (secured) private loans, 120
- Asset-based revolvers, 119
- Assets
- Attorneys, hiring ability, 220
- Auction value, premium, 170
-
- Backlog
- absence, 273
- business sale attribute, 267
- “Back to the line” option, 254–255
- Balance sheet
- cash conversion, 28
- impact, 228
- insolvency, 76,
193
- intellectual property overstatement, 196
- leverage, 41–42
- long-term debt, usage, 93
- statement, 161–162
- turnarounds, 11
- upside-down balance sheet, 117
- Bankruptcy
- arranged bankruptcy, 226–227
- attorneys, work, 213
- avoidance, 201
- bankruptcy-specific language, usage, 252
- cases, monitoring, 211–212
- Chapter 11 bankruptcy (corporate reorganization),
204–227
- contemplation, 106
- contentions, 205
- court, company exit, 233
- creditor fear, reasons, 259
- debtor usage, 206–207
- emotional argument, 235
- filing, 176,
218–227, 235–236
- financial argument, 235
- first-day motions, 220
- history, 197–201
- judge, term (service), 212
- laws
- establishment, 200
- TMA exam, 42
- writing, 197
- personal bankruptcy, 26
- preference, 222–223
- proceedings, activity intensity, 216
- process, 213,
217f
- protection, 99,
234
- result, 234–236
- stigma, 234
- support, gaining, 258–259
- term, origin, 198–199
- usage, 206
- U.S. bankruptcy
- Bankruptcy Act of 1898, 200–201
- Bankruptcy Code, compliance, 231
- Banks
- attack, 105
- changes, status list, 134f
- commercial loan risk rating matrix, 123
- debt, benefits, 118–119
- documents, examination, 132
- expectations, control, 158
- impact, 47
- lender type, 119–120
- leverage, 109
- line of credit, impact, 75
- meeting, initiation, 131–133
- negotiation, unlikelihood, 109
- offer refusal, 168–169
- payment, avoidance, 109–115
- power, reinforcement, 250
- strategy, 133,
135–140
- update, 134f
- Bibeault, Donald B., 10
- Bid requests, decline, 26
- Binding contract, usage, 95–96
- Black Diamond, founding, 202–203
- Book values, usage, 193
- Borrower, repentance, 122
- Borrowing base certificate, falsification, 71
- Boss-napping, negotiating technique, 152–153
- Budgets, 291–292
- Bureau of Labor Statistics, assistance, 277
- Business
- bidders, example, 270
- brand/reputation, tarnishing, 259
- changes, 282
- constituencies, balance, 259
- control, loss, 145–146
- debt restructuring, turnaround
process component, 41
- distress, 21
- examination, 252
- existence, reason, 27
- expensiveness, 15
- future business, sacrifice, 82
- growth, bank line of credit (impact), 75
- growth/sale, turnaround process component, 41–42
- involvement, 144
- killers, 20–26
- launch, 4–5
- leanness, commitment, 85
- liabilities, 253
- machinations, disclosure, 207–208
- models, 283–284
- problems, examples, 144–146
- money, loss, 81
- offers, example, 269–270
- order, 292
- owners
- equity retention, 95
- opportunity, 281
- protection, 71
- repair, 66–67
- resilience, 50–52
- running
- cash, usage, 38
- problem, 139–140
- sale
- attributes, 265–267
- strong offers, 264
- saving, 10
- simplicity, 24
- sociopaths, money (borrowing), 34
- stabilization, 50
- subleasing parts, 100
-
- Capital, 113
- redeployment, 129
- working capital, depletion, 138
- Cash
- absence, 47,
179–180
- balance, protection, 99
- cash-exposure window, 12
- collateral, usage ability, 220
- control, 47–49,
75
- creation, turnaround process component, 38
- crisis, 76,
82, 281
- dominion, demands, 140
- extraction, 82
- forecasting, 111
- issue, solution (absence), 155
- losses, 153
- management procedures, maintenance ability,
220
- movement, 102
- positivity, 136
- reserve, maintenance, 75
- retention, 87–88
- ROI, absence, 89
- tightness, 75–76
- Cash conversion cycle (CCC), 11–15, 12f,
19
- Cash flow, 167–170
- anemia, 179–180
- benefits, 231
- building, 94
- crisis stabilization component, 153
- forecast, 137
- 13-week cash flow forecast (13WCFF), 49, 78f–79f, 80, 133
- display, 136
- Cash in advance (CIA), payment, 13
- Censorship, 150
- Certified Public Accountant (CPA), 80, 164
- annual audits, expenses, 287
- firms, impact, 288–289
- proactivity, 33
- reports, 132
- usage, 36–37
- Certified Turnaround Professional (CTP)
- certification, 42
- numbers, 43
- value/sacrificial lamb questions, 70
- Chapter 7 bankruptcy,
202
- constructs, example, 245–246
- filing, 223
- Chapter 7 liquidation,
231
- Chapter 11 bankruptcy (corporate reorganization),
202, 204–227
- filing, stages, 218–227
- funding, 215–216
- players, 208–212
- prepackaged Chapter 11, shift, 258–259
- process, 217f
- professional team, 213–214
- relief, 240
- Character, 111–112
- Character, capacity, capital, collateral, and
conditions (5 Cs), 111–113
- Check-and-balance system, 288–289
- Chief executive officer (CEO)
- approval, 48–49
- employee perception, 90
- mental health, 28
- opinion, impact, 149
- Chief restructuring officer (CRO), hiring, 42
- Chrysler, bankruptcy, 226
- Churchill, Winston, 60
- Clean living, 293–294
- Collateral, 112–113
- borrowing base, 253
- control, 37
- coverage, 120
- leading, 135–136
- lien positions, 16
- status review sheet, 133
- usage, 48
- Collection
- acceleration, 82–83
- cycle, absence, 15
- delay/stalling, 101
- effort, defense, 244
- process, automation, 101
- Collectors, aggressiveness, 246–248
- Commercial credits, management, 122
- Commercial debt stack, 16
- Commercial lenders, priority shares, 119–120
- Commercial TMA exam, 42
- Commodity inputs, pricing, 23
- Commodity prices, increase, 26
- Communication, 111
- Community lenders, role, 129
- Company
- arranged bankruptcy, 226–227
- assets, collateral lien positions, 16–17
- cash unsustainability, 136
- court petitions, 220
- departments, joint exercise, 87
- distress, 77
- failure, takeover example, 69–70
- historical profit, 143–144
- internal cash flow generation, 136
- nonprofitability, 144
- owners, changes, 183
- rebuilding, 14
- running, fundamentals, 282
- survival, 169
- value, deterioration, 169–170
- Compliance
- strategy, recommendation, 113–114
- usefulness, 110–111
- Computers, value (loss), 196
- Concentration risk, 266
- Confidence
- faking, 59
- rebuilding, 40–41
- Confidential information memorandum (CIM), writing,
161
- Confirmation hearing, usage, 227
- Consignment, vendor inventory placement, 98
- Consultants
- impact, 35–36
- turnaround consultant, hiring, 42
- turnaround consultant, firing, 282
- Consumer Expenditure Survey, assistance, 277
- Consumer goods, distributor example, 100
- Contractors, payment cessation, 107
- Contribution margin, 146, 162
- business sale attribute, 266
- Controls, 113
- absence
- business problem, 22
- explanation, problems, 56
- establishment, 47
- loss, 259
- Core strength, gaining, 282
- Corporate change, turnarounds (contrast), 6–9
- Corporate collections, 242–253
- Corporate distress, 63, 197
- understanding, core principles, 11–15
- Corporate fraud cases, prosecution, 290
- Corporate illness, 6–7
- Corporate reorganization, Chapter 11 bankruptcy,
204–227
- Corporate risks, 76
- Corporate Turnaround (Bibeault), 10
- Corporate turnarounds
- focus, 4–5
- understanding, 3
- Corporation, debt reduction, 93
- Costs
- cutting, 146,
154
- increase (business problem), 23
- reductions, 110
- trimming, 148
- Courage
- Court fees, payment, 233
- Coverage ratio. See ALLL
coverage ratio
- Cramdown, 202,
224, 229
- Cram-down plans, prohibition,
233
- Creative destruction, concept (embracing), 88–89
- Credibility
- Credibility risk, 138–139
- Credit
- 5 Cs, 111–115
- committees, involvement, 106–109
- exit, 128
- manager, role, 62
- plans, restarting, 90–91
- sacrifice, 132
- swaps, debt, 93–94
- terms, health, 94
- Creditors
- anger, 27
- bankruptcy fear, reasons, 259
- cram-down/force, 229
- general unsecured class, 19
- letters, goals, 250, 252
- recovery, improvement, 232f
- shareholder protection, problem, 192
- solicitation process, 227
- test, best interest, 233
- voice, 271
- Crisis
- behavior, problems, 57
- control, failure (business problem), 24
- financial crisis, 55
- leadership, psychology, 52–57
- responses, 53
- stabilization, 147–148
- Criticized loans to loans ratio, 128
- Current accounts payable reports, 133
- Current bank accounts, maintenance ability,
220
- Customers
- base, business sale attribute, 265–266
- below-market prices, receiving, 81
- cash, obtaining, 98–99
- concentration, business sale attribute, 266
- confidence, rebuilding, 183
- customer-vendor relationship, 195
- loss, 26
- quality products, receiving, 81
- risk, 22
- saving, 90
- tools, business sale attribute, 266
-
- Darwin, Charles, 21
- Days of sales outstanding (DSO), 135
- Debt
- calculations, uniformity (absence), 198
- debtor cleanup, 276
- default, 87–88
- federal debts, restructuring, 276
- government collections, 276–278
- personal liability, 243
- priority, 11
- reduction, 62,
93
- rule, absolute priority, 16, 193
- satisfaction, 176
- secured debts, restructuring, 254–258
- securing, collateral (usage), 48
- servicing, 230f
- unsecured debts, restructuring, 249–258
- Debtor in possession (DIP)
- lender, attracting, 216
- loans, 215
- Debtors
- bankruptcy usage, 206–207
- psychology, 33–34
- Debt restructuring, 101, 224,
231, 239, 254f
- formal restructuring letter, 251f
- proposal, example, 258f
- support, gaining, 258–259
- turnaround process component, 41
- Debt stack, 11,
16–20
- earned labor, 178
- negotiation, 18
- Delayed payments, triple damages (liability),
180
- Denial, 106
- Depositors, fiduciary commitment, 131
- Despair, 64–67
- Development budgets, reduction, 285–286
- Diagnosis, turnaround process component, 39
- Disclosure statement
- court approval, obtaining, 227
- drafting, 227
- Distressed businesses, sellers (identification),
269
- Distressed buyers, 269–272
- Distressed purchases, asset sales, 271
- Distressed sale, 264
- Diversification, absence (business problem),
22
- Divestitures, 228,
267
- Downside risk, 8–9
- Due diligence, 268, 270
- Dunlap, Al, 63
-
- Earned labor, payment, 178–180
- Earnings before interest, tax, depreciation, and
amortization (EBITDA), 165
- Economies of scale, usage, 143
- Electronic signature, provision, 120–121
- Embezzlement, financial control requirement,
288
- Emergency action (TMA test), 10
- Empathy, 62–63
- Employees
- dedication level, 114
- issues, 156
- layoffs, 50–51
- loss, 26
- protection, 178
- reactions, problems, 179
- Employee Stock Ownership Program (ESOP) sale,
281
- Employers/employees, trouble, 180–181
- Employment, fear, 92–93
- Encounter, dynamics (change), 54–55
- English Chancery, 115
- Enrolled Agent, email (example), 174–175
- Enterprise resource planning (ERP) system, 282
- Entrepreneurial optimism, maintenance, 7
- Entrepreneurial stubbornness (business problem),
25
- Entrepreneurs
- balance sheets, overstatement,
195
- bargaining position, 159–160
- inaction, 131
- problems, 145–146
- questions, role-play, 139
- strategy, 291
- Entrepreneurship, success (overcoming), 36
- Environmental Protection Agency (EPA)
- EPA-type enforcement, 219
- raid, 183–184
- Equipment, sale, 85
- Equity
- Escrow agent, usage, 97
- European unions, change (resistance), 152
- Executive summary. See Turnarounds
- Extraordinary Administration, 117
-
- Factoring, 95
- Factory bottlenecks, 7
- Failure, success (separation), 110
- Family, support, 277–278
- Fear
- Fear of missing out (FOMO), 92
- Feasibility, 228,
233
- Federal debts, restructuring, 276
- Felonies, designation, 112–113
- Filing fees, payment, 233
- Finance companies, lender type, 120
- Financial analysis, TMA exam, 42
- Financial collapse, 208–209
- Financial covenants, usage, 7–8
- Financial crisis, 55
- Financial management, conversion, 77
- Financials, 292–293
- Financial statements, year-end adjustments,
24
- Finder/lender, role, 105
- Finished goods, access, 195
- First-day motions, 220
- First-day orders, 220
- Fixed assets, securing, 48
- Fixed costs, variability, 284
- Forbearance fees, 87
- Forced liquidation analysis, 133
- Forced liquidation value (FLV), 112, 158–166
- downside protection, 160
- retention, 85
- usage, 168
- Foreclosure, 140
- friendliness, 273–275
- handling, 274
- negotiation, 275
- threat, 121
- Foreign competitors, exchange rates (advantage),
272
- Foreign currency exchange rates, 23
- Foreign exchange rates, shifts, 26
- Four-legged stool, 80–81
- Fraud
- identification, 211
- prevention, 288–289
- Free cash flow, focus, 77
- Free, culture, 289–290
- Fundamentals, focus (maintenance), 282
- Funds, clawback/disgorge, 221
- Furniture and fixtures
(F&F), worth, 196
- Future business, sacrifice, 82
- Future cash flows, 62, 229–230
-
- General Motors, bankruptcy, 226
- General unsecured class (creditors), 19
- Genghis Khan, bankruptcy, 199
- German Insolvency Code, usage, 116–117
- Going concern
- auction process, 267
- value, liquidation value (contrast), 193
- Going-out-of-business sale, management, 274
- Goldstein, Arnold, 100
- Goodwill, 265
- development, 160
- presence, 84
- value, loss, 196–197
- Governance, 284–285
- Government collections, 276–278
- Grinder/collector, role, 105
- Gross margin
- dollars, sale, 162
- health, 145
- Gross product margin (GPM), low level (business
problem), 22–23
- Gross profit margins, 39, 145,
266
- decline, 26
- increase, 154
- measurement, absence, 36
- Gross profits, focus (change), 77
-
- Hard money loans, lender type, 120
- Hope Notes, 255
- House, foreclosure, 28
- Hurricane Irene, impact, 58–59
- Hurricane Katrina, impact, 57, 208
-
- Ill will, creation, 89–90
- Income statement, examination, 39
- Income statement turnaround, 11, 153–155
- Industry
- concentration risk, 266
- knowledge, business sale attribute, 267
- levers, 29
- Information, need, 37
- Insolvency
- defining, 192–193
- law, relationship, 191
- process, 33
- professionals, hiring ability, 220
- sale, forcing, 117
- Statute of Bankrupts interpretations, 199
- TMA exam, 42
- worsening, 89
- zone, 76, 192
- Institutional capital, 118–119
- Intellectual property, balance sheet overstatement,
196
- Internal cash flows, company generation, 136
- Internal collection efforts, 243
- Internal management issues, control, 146–147
- Internal Revenue Service (IRS)
- foreclosures, 8
- monthly allowable expenses, 277f
- restructuring, 276
- Inventory
- assets, UCC lien, 98
- audit, categorization, 85
- control, 48
- identification, 85–86
- real-value opportunity, 87
- report, 133
- sale, 85–87
- storage, 135
- UCC lien, filing, 98
- values
- Inventory conversion period
- calculation, 12
- time to make and sell, 14f
- Investment accounts, control (transfer), 113
- Involuntary bankruptcy, threat, 206
-
- Jackson, Samuel L., 59
- Jobs-for-life, defense, 152
- Junior secured position, 16–17
-
- Labor, 178–180
- Last-buy program, consideration, 166
- Law of Moses. See Mosaic
Law
- Layoffs, 29,
88–89
- cash ROI, absence, 89
- necessity, 63
- Leadership
- business problem, 26
- de factor leadership, 58–59
- desire, 58
- Leasehold improvements, 193, 196
- Lenders
- alternative lenders, 119–121
- sadism, 121–123,
128–131
- types, 119–121
- upset, emotion, 37
- Lending institutions, ratios, 128
- Letter on intent (LOI), signing, 165
- Leverage
- obtaining, 109–115
- requirement, 91
- Life insurance, cash value, 99
- Limited liability company (LLC), 242
- Line of credit. See Asset-based line of credit
- Liquidation, 40,
167, 202, 255
- analysis, 228
- company conversion, 216
- decision, 84
- forced liquidation analysis, 133
- initiation, 176
- peace, 272
- plan, negotiation, 165–166
- Liquidation value, 259
- Loan agreement
- financial covenants, usage, 7–8
- statements, 223
- Loan grading system, 123f–127f
- Loan-modification fee, 87
- Loan sharks, lender type, 121
- Long-term assets, long-term borrowing, 17
- Long-term debt, usage, 93
- Long-term payback schedule, 93
- Long-term value, building, 281
- Look-back period, 222
- Luck, preparation (impact), 21
-
- Machiavelli, Niccolo, 170
- Machinery and equipment (M&E) value, loss,
195–196
- Management
- change (TMA test), 10
- consultants, role, 35–36
- transition (business problem), 24
- Management buyout (MBO), usage, 281
- Managers, denial, 34
- Margin compression, 7
- Market place, shift, 26
- McKinsey consultants, 35–36
- Mental acuity, usage, 147
- Mental health, examination, 147–148
- Merchant's cash advance (MCA), 17–18
- lenders, lender type, 120–121
- Mindset, impact, 148–149
- Mittelstand (pride), 116
- Momentum, shift (ability), 161
- Money
- Moral, rebuilding, 40–41
- Mosaic Law (Law of Moses), 198
- Motivation, 67–70,
92
-
- Nonaccrual loan (nonperforming loan), 128
- Nonconformance, fear, 92
- Nonrecourse factoring, 95
- Nonstrategic buyers (financial buyers),
development, 164
-
- Obligations, payment, 76
- Occupational Safety and Health Administration
(OSHA), contact, 184
- Offering memorandum (OM)
- Of Mice and Men (Steinbeck), 182
- Old debt recovery, odds (improvement), 90
- Open management style, 52
- Open-payment terms, product sale, 98
- Operational cycles, review, 283
- Operations, streamlining, 146
- Order writers, earning, 286–287
- Organization
- reshaping, ability, 42
- shock, 61
- Out-of-court restructuring, usage, 239
- Out-of-court settlement, favoring, 241–242
- Overanalysis (business problem), 22
- Overcomplication (business problem), 24
- Overdraft fees, 87
- Overexpansion (business problem), 23
- Overhead, expansion, 26
- Overleverage (business problem), 22
- Overreaction, turnaround process component,
38
- Overtime, authorization/absence, 71
- Owner health/distraction (business problem),
23
- Ownership
- delivery, 191
- interest, maintenance, 98
-
- Pain tolerance (business problem), 25
- Parent company, strategic advantage (absence),
263
- Pareto Principle (80/20 Rule), 87
- Past-due amounts, payment suspension, 51
- Patton, George, 58
- Payables deferral period, calculation, 13
- Payables, slowness, 83–84
- Payments
- avoidance, reasons, 221–223
- inducing, 250
- making, inability, 117
- stretching, 100
- Payroll, 174
- People, selection (importance), 285–286
- Perishable stock, rate, 48
- Personal bankruptcy, 26
- Personal debt, impact, 248
- Personal financial statement (PFS), 112–113
- Personal guarantees, 28
- liquidation/collection, 255
- Personal guarantors, personal financial statements,
133
- Personal liability, limitation, 242
- Physical health, examination, 147–148
- Pop-management reading material (business problem),
24–25
- Post-traumatic stress disorder (PTSD), 57
- Pre-invoice UCC filing, 96–97
- Premium, accrual, 93–94
- Prepackaged bankruptcies, usage, 224–225
- Prepackaged Chapter 11, shift, 258–259
- Prepetition employee wages, payment ability,
220
- Price-earnings ratio (PE) buyers, 165
- Prices
- increase, 81–82
- raising, formula, 146–147
- Priority claims, treatment, 233
- Priority-of-debt rule, 101
- Private company debt stack, example, 20f
- Procurement, formalization, 85
- Producer, UCC-1 lien completion, 96–97
- Product
- brokering, 155–156
- design, 154
- development
- absence, 26
- backlog, 41–42
- enjoyment (business problem), 25
- pricing, 145–146
- retrofitting, 283
- sale, 98
- Professional help, understanding, 42–43
- Profitability, 291–292
- Profit and loss statement (P&L), 161–162
- Profit-breakeven product, 266
- Profits, change, 22
- Pro forma income statement, future cash flows
(display), 230f
- Program/platform lifecycles, presence, 83
- Pulp Fiction, 59–60
- Purchase order (PO)
- financing, 95–96
- requirement, 85
- Pure trader, role, 166
-
- Quick evaluation (TMA test),
10
-
- Range of days payable, 13f
- Real conversion cycle, absence, 15
- Realized acquisition synergies, 268f
- Receivables
- collection, 8–9
- collection period, 15f
- Receivership, 115–118
- attainment, difficulty, 116
- Redfield, Isaac, 200
- Refashioning, 86
- Refinancing, allowance, 255
- Regulators, 101,
173
- business problem, 24
- impact, 28,
47
- interaction, 181–187
- mentioning, 252
- unregulated regulators, creation, 182–183
- Regulatory approval, requirement, 231
- Remittance process, automation, 101
- Renewal, concept (embracing), 88–89
- Reorganization, 202
- efforts, 221
- out-of-court reorganization, 236
- plan, 228
- success, example, 232f
- Reorganization plan
- confirmation hearing, holding, 227
- debtor confirmation, requirement, 231, 233
- drafting, 227
- full disclosure, provision, 231
- good faith development, 231
- negotiation, 227
- steps, 227–233
- usage, 233
- Reorganization, turnaround process component,
39
- Repossessions, 219
- Repurposing, 86
- Resource factoring, 95
- Resources, accumulation, 282
- Respect, need, 37
- Restructured and nonaccrual loans (dollar amount)
ratio, 128
- Restructured debt, 29
- Restructuring. See Debt
restructuring
- attorney, role, 165–166
- occurrence, 224
- proposal, example, 256–257
- Retained earnings, virtuous cycle (creation),
145
- Retiree benefits (protection), reorganization plan
(usage), 233
- Return to normal growth (TMA test), 10
- Revenues
- decline, 50–51
- loss, 41
- reactions, 39
- streams, flattening, 284
- Revolver, 17
- Revolving line of credit
- maximization, 108
- usage, 86
- Revolving loan, 17
- Risk
- Rogers, Will, 3
- Roosevelt, Theodore, 295
- Rounding error, 129
-
- Sacrificial lambs
- benefit, 71
- presence, 70–72
- Sale leaseback, 100
- Sales, 286–287
- decline (business problem), 23
- increase, 153
- prospects, 29
- Salvation, focus, 135
- Salvation process, 155–158, 264
- cash flow, 167–170
- financing, 167
- targets, stacking, 157f
- Secured commercial debt, review, 119–121
- Secured debts, 226
- Securities and Exchange Commission (SEC)
regulations, compliance (absence), 228
- Sell-side advisors, requirement, 214
- Service academies, 52
- Shareholder
- fiduciary commitment, 131
- interaction, 62
- value, production, 35
- SKU rationalization, 87
- Small Business Administration (SBA)
- Smith & Hawkin assets, bankruptcy auction,
208
- Sociopaths, money (borrowing), 34
- Stability, provision, 147
- Stabilization
- TMA test, 10
- turnaround process component, 37–38
- Staff, development (opportunity), 285
- Stakeholders, message, 60–61
- Statute of Bankrupts, 199
- Steinbeck, John, 182
- Stock options, usage, 170
- Storyline, following, 144–146
- Strategic buyers
- expedited sale, 158
- universe, 163
- Strategic direction, selection, 282
- Strategic exits, 263
- Strategic investment, 164–165
- Strategy
- avoidance, 50
- usage, 290–291
- Strong-arm powers, 223
- Stubbornness, 25
- Success, failure (separation), 110
- Sunk development cost, presence, 15
- Survivability, indication, 137
- Survival option, example, 65–66
- Syndication, impact, 130
-
- Tarantino, Quentin, 59
- Tax
- consequences, 228
- liens, placement, 176
- stretching, 100
- withholdings, 101
- Tax returns, 132
- Team, crisis readiness, 29
- Theft
- culture, 289–290
- inventory value loss, 48
- Third-level secured creditors,
presence, 18
- Third-party collection efforts, 243
- Total nonaccrual loans to loans ratio, 128
- Training budgets, reduction, 285–286
- Transfers
- avoidance, reasons, 221–223
- fraud, 221–222
- Travolta, John, 59
- Treatise on the Law of Railways (Redfield),
200
- Troubled debt restructure, 128
- Turbulence, impact, 52
- Turnaround Management Association (TMA), 70
- distress tests, 10
- exams, coverage, 42
- Turnaround of the Year Award, 149
- Turnarounds
- completion, 41–42
- consultants
- corporate change, contrast, 6–9
- cost-cutting exercises, 154
- crisis stabilization component, 153–154
- execution, turnaround process component, 40–41
- executive summary, 133
- fighting, 64
- future, 31–32
- hero opportunities, 67
- income statement turnaround, 153–155
- job, future, 26–29
- leadership, ethics, 29031
- learning, 106
- management, 42,
143
- plan, turnaround process component, 40
- problems, 9–10
- process, 37–42
- results, 155–158
- stakes, 68
- term, imprecision, 6
- toll, 31
- types, 11
- work, 40
-
- Unaccrued liabilities, problems, 101
- Uncertainty, creation, 169
- Undercapitalization (business problem), 21–22
- Uniform Commercial Code (UCC), 192
- filing, 98
- interpretations, 192
- standard terms of trade, 19
- UCC-1 filings, 16
- UCC-1 liens
- completion, 96–97
- establishment, 17
- Unions, 149–153
- local hospitality workers union, involvement,
151
- organizers, opportunities, 149–150
- specialist, contact, 150–151
- United Arab Emirates, bankruptcy law creation,
201
- United Steel Workers, Turnaround of the Year
Award, 149
- Unregulated regulators, creation, 182–183
- Unsecured debts, restructuring, 249–258
- Unsecured lenders, 19
- Upside-down balance sheet,
117
- U.S. bankruptcy
- U.S. Bankruptcy Code
- Title 11, 203–204
- U.S. Bankruptcy Court administration, 192
- U.S. Trustee fees, payment, 233
- U.S. Trustee Program, 211
-
- Valley of the Grind, 216
- Valuation TMA exam, 42
- Vendors, 61–62
- customer-vendor relationship, 195
- date check holding, 98
- debt, payment (avoidance), 101
- financing, downside, 191
- inventory placement, 98
- inventory sales, 98
- negotiations, 91–93
- payment, 84,
221
- ability, 220
- terms, generosity, 15
- relationships, 49
- UCC-1 form completion, 97
- Voting rules, 228
-
- Wages, reduction, 89–90
- Warning signs, 26
- Wayne, John, 57–60, 63
- Whole life insurance policy fund, usage, 99
- Wind-down, 223
- Wolf, Winston, 59–60
- Worker Adjustment and Retraining Notification Act
(WARN Act), 89, 166, 178–179
- Workers' compensation insurance, usage, 180
- Workforce, leverage, 181
- Working capital, depletion, 138
- Work in process (WIP) inventory, conversion,
160
- Work, obsessiveness, 163–164
- Workout team, impact, 254–255
- Worst-case liquidation value, creditor
establishment, 214
- Worst-case scenario, establishment, 158
-
- Year to date (YTD) financial reports, 132
