Claims Modeling Simulation

In the simulation, participants will:

• Analyze a distressed company's capital structure and legal documents.

• Build financial models to estimate recovery values under different scenarios.

• Prioritize claims based on seniority and security.

• Formulate and negotiate restructuring proposals with other parties.

• Respond to new information, such as asset sales or changes in market conditions.

• Advocate for their client's or creditor class's position to maximize returns.

• Understand the hierarchy of claims in a corporate capital structure.

• Apply financial modeling techniques to value distressed assets and estimate recovery.

• Analyze legal covenants and their impact on recovery prospects.

• Develop strategic negotiation tactics for restructuring discussions.

• Navigate the key stages of formal bankruptcy or informal restructuring processes.

• Communicate complex financial and legal positions clearly to stakeholders.

• Balance analytical rigor with strategic compromise to achieve viable solutions.

• Build confidence in handling high-stakes financial distress situations.

1. Receive a Case Brief Participants are introduced to a distressed company, its capital structure, and the key issues.

** 2. Analyze the Situation** They review financial statements, debt documents, asset valuations, and market data.

3. Model and Strategize Participants build recovery models, determine their bargaining position, and develop a negotiation strategy.

4. Collaborate and Negotiate Teams engage with other creditor groups to propose and debate restructuring plans.

5. Communicate Outcomes Participants present final settlement proposals or advisor recommendations.

6. Review and Reflect Feedback highlights recovery outcomes, negotiation effectiveness, and strategic choices. Strategies evolve across rounds.

• Who is the claims modeling simulation designed for? It's ideal for participants interested in investment banking (restructuring groups), credit analysis, hedge funds (distressed debt), private equity, and corporate turnaround management.

• Do I need prior restructuring or legal experience? No prior specialized experience is required. The simulation includes instructional content on key concepts for all levels, though a basic understanding of corporate finance is beneficial.

• How long does the simulation run? Typically 3 to 5 hours. It can be delivered in a single intensive session or broken into modules over multiple sessions.

• Is the simulation individual or team-based? It is primarily designed as a team-based simulation to replicate real-world creditor committee dynamics and negotiations, but it supports individual analysis components.

• What types of claims are covered? The simulation covers senior secured loans, unsecured bonds, subordinated debt, vendor claims, and potentially equity interests in a restructuring context.

• Are real-world cases used? Yes. Participants work with simulated but highly realistic data and scenarios based on common restructuring challenges and documented case studies.

• Can instructors customize the simulation? Absolutely. The complexity of the capital structure, the focus on specific industries, and the depth of financial modeling can be tailored to the audience.

• What roles does this simulation prepare participants for? It prepares participants for roles in restructuring advisory, distressed debt investing, credit risk management, special situations desks, and related legal and financial advisory professions.

• Accuracy and depth of the financial recovery model.

• Strategic rationale for negotiation positions and concessions.

• Effectiveness in achieving favorable recovery terms for their assigned role.

• Clarity and persuasiveness in communicating proposals.

• Collaboration and adaptability during negotiation rounds.