Restructuring & Special Situations
Overview
Macquarie's Restructuring and Special Situations group advises companies, their creditors and other stakeholders regarding balance sheet restructurings, corporate finance transactions, strategic alternatives and mergers and acquisitions. Additionally, we have the ability to provide capital to invest with our clients in situations that are uniquely challenged or distressed from a financial or operational perspective.
With one of the largest dedicated US restructuring teams of any global financial advisory firm, Macquarie provides a full range of advisory services for debtors, creditors and other stakeholders. Our restructuring advisory services are provided in the context of early interventions, informal workouts, out-of-court restructurings and formal bankruptcy proceedings.
The Macquarie difference
It is Macquarie's unique approach to the restructuring process and the depth and breadth of services and expertise we offer our clients that differentiate Macquarie from our competitors.
These include:
- the focus, flexibility and specialization of a client-oriented restructuring business backed by the strength and resources of a global platform
- a full range of restructuring advisory services for debtors, creditors and prospective investment partners
- alignment with Macquarie's industry groups, providing deep sector expertise and operational insight gained through our asset management and investment experience
- extensive global corporate finance capabilities
- the ability to deliver broader, more innovative solution sets by drawing on Macquarie's diverse range of capabilities and clients
- the principal investment perspective: combining greater understanding of and alignment with the mindset of our clients with hands-on asset management expertise and co-investing capability
- uniquely integrated combination of our special situations investing expertise and funds management business, enabling access to deal flow and potential investors through Macquarie's global advisory platform.
Our clients
Macquarie's Restructuring Advisory team serves a diverse range of clients and stakeholders, including:
- public and private companies
- secured and unsecured creditors
- official and ad-hoc creditor committees
- board of directors / special committees
- bondholders
- private equity sponsors
- hedge funds
- purchasers of distressed assets
- Debtor-in-Possession (DIP) lenders.
The experience and resources to deliver
Harness the expertise of one of the largest dedicated US restructuring teams of any global financial advisory firm, with:
- 25+ dedicated restructuring professionals in the US, backed by the expertise and resources of Macquarie Capital's global advisory team
- 30+ years in the restructuring business
- a track record of success through all economic cycles
- over 360 deals completed since 2001
- access to sector-specific expertise from Macquarie's global industry groups and active asset management experience from a portfolio of assets managed around the world.
Our services
Macquarie specializes in providing financial and capital advisory services for clients facing a number of challenges.
Balance sheet restructurings
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Recapitalizations
Advising companies that are looking to address challenging capital structure situations which may require raising new capital and/or a renegotiation of existing debt instruments. -
Exchange offers
Our restructuring advisory team has significant expertise in structuring debt for equity exchange transactions, designed to alleviate a company's debt burden. -
Debt modifications
Assisting companies in negotiating amendments to key terms to allow a company to execute its business plan. -
Forbearance agreements
Assisting companies in negotiating with lender groups to delay any potential actions against the company as a result of a credit agreement default, with the objective of allowing additional time for the company to assess its strategic alternatives and find a viable solution. -
Rights offerings
Macquarie has vast experience executing rights offerings, which have proven to be a valuable source of liquidity in distressed transactions. -
Chapter 11 restructurings, including pre-packaged and pre-arranged restructurings
Macquarie's professionals have played an active role as advisors in many of the largest US bankruptcy cases. -
Out-of-court restructurings
We believe that early interventions in distressed situations provide the best possible solutions. We can assist with negotiated restructuring solutions that are executed out-of-court, which avoid the costly and time consuming bankruptcy process as well as the unintended consequences to the company's operations.
Special situations capital raising
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Debtor-in-Possession financing
Macquarie works with debtors in sourcing, structuring and negotiating DIP financing to achieve the three main objectives for these types of facilities: maximizing credit availability; maximizing flexibility to the company; and minimizing all-in costs. -
Exit financing
Providing exit financing sourcing and execution by assisting the company in analyzing its debt capacity and assessing its funding needs to ensure a successful and sustainable exit from bankruptcy. -
Rescue financing
Our team has extensive relationships with the distressed lending community and can rapidly assist its clients in arranging rescue/bridge financing in challenging situations. -
Refinancing
Assisting companies that are seeking to replace their existing debt instruments by sourcing the right funding from the right partner for each situation. -
Private financings
Macquarie has a dedicated debt structuring team with extensive capabilities to execute private placement transactions.
Distressed M&A
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363 sales
Our professionals have extensive deal experience in advising both buyers and sellers in 363 sale transactions. Our expertise covers areas such as the valuation of the company or target, negotiation of stalking horse bids, structuring of the sale transaction and designing bidding strategies for 363 sale auctions. -
Complex divestitures
Assisting companies in identifying assets to be divested and helping them structure and execute the transactions to maximize value and minimize execution risk. -
Stalking horse transactions
Macquarie's vast global transaction experience provides a key advantage when advising buyers and sellers in structuring stalking horse agreements. -
Credit bid acquisitions
Representing lenders who see potential upside in the borrower's business in structuring and executing credit bids, which can prevent a sale transaction that would only generate proceeds at liquidation levels and only partially repay the debt outstanding.
Strategic alternatives assessment
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Transaction optimality determination
Assisting companies in carefully evaluating all potential strategic alternatives and selecting the one that maximizes value to the parties involved. -
Business plan assessment
Macquarie's deep industry expertise allows our professionals to provide significant value to our clients when assessing proposed business plans by challenging major assumptions and focusing on the key value drivers of the business. -
Liquidity forecasting
In an environment where cash is king, our team understands the benefits of accurate and timely liquidity forecasting and reporting, a necessary tool in evaluating and solving distressed situations. -
Managerial metrics
Our professionals team up with Macquarie's industry specialists to evaluate and benchmark key operational metrics in our clients' businesses as a precursor to the evaluation of potential strategic transactions.
Special situations financing
Macquarie aims to provide a broader solution set for our clients, by extending our capabilities beyond advisory to capital provider, investor and partner. By leveraging the diverse professional experience and investment expertise of our team members and Macquarie's ability to deploy capital, Macquarie provides creative, value-added solutions to clients where traditional avenues are unavailable.
Macquarie is focused on non-traditional and distressed financing situations outside of the usual high yield and loan markets.
Macquarie is able to underwrite and distribute capital in the following situations:
Out-of-court
- Rescue financings
- Pre-restructuring special situations.
In-court
- DIP financing
- Section 363 sales
- Exit financing.
Senior restructuring professionals
Our senior restructuring professionals have in excess of 20 years of restructuring experience on average. Their expertise covers a wide range of service offerings as well as industry sectors.
The team to deliver results:
- Mick Solimene - Senior Managing Director
- David S. Miller - Managing Director
- Martin Nachimson - Consultant - Managing Director
- Ford R. Phillips - Managing Director
Click on the grey arrows to expand each profile.
- Mick Solimene
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Senior Managing Director
T: (312) 756-3833
E: mick.solimene@macquarie.com
View details for Mick SolimeneMick Solimene is a Senior Managing Director at Macquarie Capital (USA) Inc. in Chicago where he runs the Restructuring and Special Situations Group. He has over 29 years experience as an advisor to companies and key stakeholders in executing a variety of complex capital structure transactions, including out-of-court and Chapter 11 debt restructurings, mergers and acquisitions and financings.
Mr Solimene was previously a founding principal and Managing Director at Giuliani Capital Advisors LLC where he led the Restructuring Advisory Group and was a member of the Board of Directors. He was also a Managing Director with the Global Special Situations Group at Banc of America Securities LLC where he managed a proprietary investment portfolio of distressed debt securities.
Mr Solimene holds an MBA from The University of Chicago Graduate School of Business and is a member of the Turnaround Management Association and American Bankruptcy Institute.
- David S Miller
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Managing Director
T: (404) 815-3421
E: david.miller@macquarie.com
View details for David MillerDavid Miller is a Managing Director at Macquarie Capital (USA) Inc. and is the Chief Operating Officer of the Restructuring and Special Situations Group. Mr Miller has over 25 years experience in over 100 financing, M&A and/or restructuring transactions involving over $30 billion of transaction value. He has represented acquirers, companies, lenders, bondholders, unsecured creditors and private equity investors in transactions involving both private and publicly-traded companies.
Mr Miller was previously a Managing Director and founding member in the boutique investment banking firm Giuliani Capital Advisors LLC, which was formed in concert with the former Mayor of New York City, Rudolph Giuliani. Prior to that he was both a Partner and Managing Director in the investment banking practice of Ernst & Young Corporate Finance.
Mr Miller holds a BBA from Emory University, has completed the Executive Program from the Kellogg School of Management, and is a member of both the American Bankruptcy Institute and the Association for Insolvency and Restructuring Advisors, and also holds certifications as an Insolvency and Restructuring Advisor (CIRA) and in Distressed Business Valuations (CDBV).
- Martin Nachimson
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Consultant - Managing Director
T: (310) 557-4313
E: martin.nachimson@macquarie.com
View details for Martin NachimsonMartin Nachimson is a Managing Director at Macquarie Capital (USA) Inc. and is Head of the Los Angeles restructuring practice. As senior member of the group with over 40 years experience, Mr Nachimson has represented companies, lenders, committees,acquirors and other parties in connection with restructurings, including some of the nation's largest cases. His engagements have ranged across a wide array of industries.
Mr Nachimson's entire career has been with Macquarie and predecessors Ernst & Young, LLP/ Ernst & Young Corporate Finance/ Giuliani Capital Advisors. He is a Fellow of the American College of Bankruptcy and has been recognized also by being listed in the K&A Register of the 100 Leading Bankruptcy and Restructuring Lawyers and Financial Advisors in the United States.
Mr Nachimson holds an AB from Cornell University and an MBA from Columbia University. He is a member of the American Bankruptcy Institute and the American Society of Certified Public Accountants.
- Ford R Phillips
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Managing Director
T: (312) 756-3870
E: ford.phillips@macquarie.com
View details for Ford R. PhillipsFord Phillips is a Managing Director at Macquarie Capital (USA) Inc. in the Chicago office with a primary focus on providing corporate debt restructuring, reorganization, and strategic advisory services to both debtors and creditors. He has more than 17 years experience dealing with a variety of complex capital structure solutions in distressed situations, including out-of-court and Chapter 11 debt restructurings, exchange offers, capital raisings and mergers and acquisitions. Mr Phillips has served clients in a wide variety of industries including manufacturing, primary metals, energy, specialty finance and retail.
Mr Phillips was previously a Managing Director at Giuliani Capital Advisors LLC. Prior to that he was a Managing Director at Ernst & Young Corporate Finance LLC, and served in the restructuring division of Lazard Frères & Co.
Mr Phillips holds a Bachelor of Science in Accounting from Illinois State University, is a Certified Insolvency and Restructuring Advisor, and a member of the Turnaround Management Association and Association of Insolvency and Restructuring Advisors.
Selected experience
Macquarie's Restructuring and Special Situations team works with a broad array of clients across a range of industry sectors. Selected recent transactions are shown below.
| Year | Client | Description | Transaction value |
|---|---|---|---|
| September 2011 | Alabama Aircraft Industries, Inc. | Financial advisor to Alabama Aircraft Industries, Inc. in the sale of substantially all of it assets under Section 363 | Not disclosed |
| August 2011 | ArchBrook Laguna Holdings LLC | Financial advisor to ArchBrook Laguna LLC in its bankruptcy and sale process | $US30m |
| June 2011 | GE Capital | Exclusive financial advisor to the Senior Secured Lenders of Prince Sports, Inc. | Not disclosed |
| June 2011 | Wilshire State Bank | Exclusive financial advisor to Wilshire State Bank in the sale of a distressed loan portfolio | Not disclosed |
| May 2011 | Summit Business Media | Financial advisor to the 1st lien lender group of Summit Business Media | $US175m |
| April 2011 | Southern Connector | Exclusive financial advisor to the Senior Bondholders of the Connector 2000 Association, Inc. | $US238m |
| March 2011 | Mesa Air Group | Exclusive financial advisor to the Official Committee of Unsecured Creditors of Mesa Air Group, Inc. | $US1bn |
| March 2011 | Böwe Bell + Howell | Exclusive financial advisor to the 1st lien lender group of Böwe Bell + Howell | Not disclosed |
| December 2010 | C&D Technologies | Exclusive financial advisor and sole dealer manager to C&D Technologies, Inc. in an exchange of Convertible Notes | $US124m |
| December 2010 | Motor Coach Industries, Inc. | Financial advisor to the 1st lien lender of Motor Coach Industries, Inc. | Not disclosed |
| December 2010 | Tensar Corporation | Exclusive financial advisor to Tensar Corporation in an amendment of its Credit Facilities and a recapitalization of the company’s balance sheet | Not disclosed |
| December 2010 | Wilshire State Bank | Exclusive financial advisor to Wilshire State Bank in the sale of a distressed loan portfolio | Not disclosed |
| November 2010 | General Growth Properties, Inc. | Senior co-manager to General Growth Properties, Inc. for a Common Equity follow-on offering as part of the company’s reorganization | $US2.28bn |
| August 2010 | Inland Real Estate Corporation | Sole deal manager on Inland Real Estate Corporation’s successful tender of outstanding 4.625% Convertible Notes due 2026 for cash and new notes | $US44.2m |
| May 2010 | Varel International | Financial advisor to the 1st lien lender group to Varel International | Not disclosed |
| April 2010 | C&D Technologies | Placement agent and exclusive financial advisor to C&D Technologies for its senior secured 2nd lien term loan facility | $US20m |
| February 2010 | Prince, GE Capital | Financial advisor in the capacity as Agent of 1st lien lender group | Not disclosed |
| January 2010 | JT Packard | Financial advisor to JT Packard in its sale to Thomas & Betts | Not disclosed |
| January 2010 | Taurus Aerospace Group | Financial advisor to the Taurus Aerospace Group in executing an amendment of its Senior Secured Credit Facility | Not disclosed |
| December 2009 | Lazy Days' R.V. Center, Inc. | Financial advisor to Lazy Days’ R.V. Center, Inc. in its consummated pre-packaged Plan of Reorganization pursuant to chapter 11 of the Bankruptcy Code | Not disclosed |
| December 2009 | Patriot Capital Funding | Financial advisor to Senior Secured Lenders of Patriot Capital Funding on Full Repayment of Defaulted Credit Facility | $US197m |
| October 2009 | Express Energy Services | Financial advisor to the Debtors of Express Energy Services in the company’s Chapter 11 bankruptcy protection proceedings | Not disclosed |
| September 2009 | MagnaChip | Financial advisor to the 1st lien lender group of MagnaChip | Not disclosed |
| September 2009 | Dayton Superior Inc. | Financial advisor to 1st lien lender group of Dayton Superior Inc. in its successful exit from Chapter 11 proceedings | Not disclosed |
| July 2009 | Georgie Gulf Corporation | Financial advisor to the 1st lien lender group of Georgia Gulf Corporation in its successful amendment to its Sr. Secured Credit Facility in conjunction with a debt for equity exchange | Not disclosed |
| June 2009 | Kimball Hill Homes | Financial advisor to the 1st lien lender group of Kimball Hill Homes | Not disclosed |
Selected case studies
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