Corporate Restructuring Simulation

In the simulation, participants will:

• Perform a thorough analysis of the company's financial and operational distress.

• Develop and compare multiple restructuring scenarios and strategic alternatives.

• Negotiate terms with different creditor committees to reach a consensus plan.

• Manage week-to-week liquidity and make urgent funding decisions.

• Decide on operational turnaround initiatives, such as plant closures or headcount reductions.

• Navigate simulated court proceedings or regulatory hurdles.

• Present final restructuring plans to a simulated creditor vote or board of directors.

• Reflect on the trade-offs made between recovery rates, control, and future viability.

• Understand the common causes and stages of corporate financial distress.

• Apply frameworks for diagnosing a company's operational and financial health.

• Evaluate and choose between different restructuring strategies and tools.

• Navigate the complexities of multi-party stakeholder negotiations.

• Construct and defend a coherent, financially sound restructuring plan.

• Appreciate the legal and ethical dimensions of restructuring processes.

• Develop confidence in making high-stakes decisions with incomplete information under time pressure.

• Communicate restructuring rationale effectively to diverse audiences.

1. Receive the Case Brief Teams are introduced to a distressed company with detailed financials, industry context, and stakeholder profiles.

** 2. Diagnose and Analyze** They review financial models, covenant breaches, creditor claims, and market data to identify core problems.

3. Develop the Plan Participants build financial forecasts and formulate a proposed restructuring plan, selecting the optimal mix of financial and operational actions.

4. Negotiate with Stakeholders Teams engage in multi-round negotiations with other groups acting as different creditor classes or potential acquirers.

5. Finalize and Present Participants submit a final restructuring term sheet and deliver a persuasive presentation to a "creditors' committee" for approval.

6. Review and Reflect Detailed feedback is provided on the financial soundness, negotiation outcomes, and feasibility of the plan. Teams discuss lessons learned and how strategies evolved.

• Who is the corporate restructuring simulation designed for? This simulation is designed for MBA students, finance MSc candidates, and professionals in investment banking, private equity, turnaround consulting, and corporate development who want hands-on experience in managing company turnarounds.

• What prior knowledge is required for the restructuring simulation? A basic understanding of corporate finance and financial statements is helpful. The simulation includes instructional content, case studies, and guides to support participants of all levels through the complex process.

• How long does the corporate restructuring simulation take to complete? The core simulation typically runs for 4-6 hours. It can be condensed into an intensive workshop or extended into a multi-session module with deeper analysis, similar to the flexible formats of our Investment Banking and Debt Financing simulations.

• Is this a team-based or individual corporate finance simulation? It is primarily designed as a collaborative, team-based simulation to reflect the real-world dynamic of a restructuring advisory team, but it can also support individual learning paths.

• What real-world restructuring scenarios are covered? Scenarios include dealing with over-leveraged balance sheets, operational turnaround needs, distressed M&A (Section 363 sales), and navigating both in-court and out-of-court restructuring processes.

• Can instructors customize the corporate restructuring simulation? Yes, instructors can tailor key variables such as the industry, the severity of distress, the creditor landscape, and the available restructuring tools to align with specific course objectives.

• How is performance measured in the simulation? Performance is measured holistically based on the financial viability of the final plan, the value recovered for key stakeholders, success in negotiations, quality of strategic analysis, and clarity of communication.

• What career paths does this simulation prepare participants for? It prepares participants for roles in restructuring advisory groups, distressed debt investing, turnaround management, leveraged finance, and any corporate role where understanding financial distress is crucial.

• The accuracy and depth of their financial diagnosis and forecasting.

• The creativity, coherence, and viability of their proposed restructuring plan.

• The effectiveness of their stakeholder negotiations and achieved outcomes.

• The clarity, persuasiveness, and professionalism of their final presentation.

• Team collaboration and strategic adaptability throughout the process.