Our corporate restructuring team offers a wide range of services to companies that are in the early stages of distress and to banks and other financial institutions that have lent those companies. The end result is a set of innovative solutions to some of our client’s most complex problems. We advise clients on how to realize untapped value for stockholders in corporate restructurings and recapitalizations. We typically begin with an in depth analysis of why our client’s business is below its potential value and, in collaboration with management, develop alternative proposals for enhancing shareholder value.
Restructuring options may include selling non-core operating businesses to strategic buyers willing to pay a premium, distributing shares in a subsidiary to stockholders in a tax-free spin-off, or selling shares in a subsidiary to the public in an underwritten offering.
Recapitalization options may include straightforward actions such as an increase in the dividend payout, payment of a special dividend or stock repurchase or bolder initiatives such as a leveraged recapitalization, leveraged cash out or going private. Our restructuring and recapitalization advisory services include a critical assessment of the risks to debt and equity securities holders, as well as the immediate and expected long term benefits to shareholders.
Maintaining confidence when an organisation encounter financial difficulties is crucial as there can be a tendency for investors and other stakeholders to lose confidence in management and in the future potential of a business as soon as the first signs of difficulties appear. In such situations, creditors and other stakeholders demand more information on plans and actions and a clearer picture of the direction that management intends to follow. To more accurately assess their position and prospects for the business, stakeholders need prompt and reliable information in sufficient detail to analyse the alternative courses of action available.
Management in turn needs to offer stakeholders an organized, consistent and unified strategy to deal with the issues facing the business. Langa Attorneys can help management devise a credible and robust restructuring strategy aimed at boosting the performance of the business and assist in the delicate task of communicating this strategy to stakeholders to boost stakeholders.
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