Restructuring Modelling:

Strategic and Financial Training Program

Training Introduction:

Restructuring modelling is a vital skill for professionals working in distressed finance, turnaround management, and special situations. Whether dealing with declining performance, excessive leverage, liquidity crises, or insolvency risks, building effective financial models helps guide critical decisions for recovery, stakeholder negotiation, and value preservation.

This Restructuring Modelling course offers participants hands-on tools and techniques to model business turnaround scenarios, debt restructuring, covenant compliance, recovery value analysis, and insolvency options (e.g., Chapter 11, liquidation). It also provides frameworks for financial forecasting, stakeholder impact modelling, and sensitivity analysis for distressed and special situations.

The course combines practical financial modelling in Excel with strategic insights into how restructuring decisions affect debt holders, equity holders, and operations.

 

Course Objectives:

By the end of the training, participants will be able to:

• Identify early warning signs of financial distress
• Build restructuring models to analyze liquidity, solvency, and debt capacity
• Model multiple restructuring strategies (debt rescheduling, equity infusion, asset sales)
• Conduct creditor recovery analysis (waterfall modelling, liquidation value)
• Assess covenant compliance and simulate waivers or amendments
• Analyze operational turnaround scenarios and impact on cash flows
• Prepare models for stakeholder negotiations and court-led processes
• Evaluate post-restructuring capital structure and financial viability

 

Target Audience:

• Corporate Finance and FP&A Professionals
• Investment Bankers and Restructuring Advisors
• Private Equity and Distressed Debt Investors
• Insolvency Practitioners and Legal Advisors
• Turnaround Consultants and CFOs
• Business Analysts and Risk Managers
• MBA Students specializing in finance or restructuring

 

Course Duration:

4 Weeks (15 days intensive format or spaced delivery)

 

Course Content

Module 1: Introduction to Corporate Restructuring

• Definition and objectives of restructuring
• Types: financial, operational, strategic, legal
• Key stakeholders in distressed scenarios
• Overview of in-court vs. out-of-court restructuring

Module 2: Identifying and Diagnosing Distress

• Financial warning signs and early indicators
• Liquidity vs. solvency distress
• Common causes: over-leverage, declining margins, industry shocks
• Financial statement red flags

Module 3: Building the Base Financial Model

• Structuring inputs, assumptions, and base case
• Linking income statement, balance sheet, and cash flows
• Setting up a 3-statement model for a distressed company
• Incorporating scenario flexibility

Module 4: Modelling Liquidity Forecasts

• 13-week cash flow models vs. long-term forecasts
• Modelling receipts, disbursements, and working capital flows
• Identifying cash shortfalls and timing
• Use of revolving credit lines and bridge financing

Module 5: Operational Turnaround Modelling

• Cost-cutting, revenue recovery, and margin improvement scenarios
• Modelling SG&A reductions, headcount adjustments, and CapEx cuts
• Operational KPI linkage to financials
• Sensitivity analysis for turnaround plans

Module 6: Debt Schedule and Interest Modelling

• Building detailed debt schedules
• Interest expense forecasting and payment timing
• Amortizing vs. bullet loans, covenants, and payment-in-kind (PIK) interest
• Modelling default events and maturity walls

Module 7: Covenant Compliance Modelling

• Common covenants: interest coverage, leverage, fixed charge coverage
• Forecasting covenant ratios over time
• Simulating breaches, waivers, or resets
• Implications for lenders and management

Module 8: Debt Restructuring Scenarios

• Rescheduling vs. refinancing vs. conversion
• Modelling principal forgiveness, haircuts, and maturity extensions
• Debt-for-equity swaps and their dilution impact
• Credit agreement restructuring mechanics

Module 9: Stakeholder and Waterfall Recovery Modelling

• Priority of claims: senior, subordinated, unsecured, equity
• Waterfall modelling: distributions in bankruptcy or liquidation
• Estimating recovery rates for creditors
• Modelling impairment and write-downs

Module 10: Liquidation and Going Concern Valuation

• Liquidation value estimation of assets
• Asset-by-asset recovery modelling
• Going concern DCF under distressed assumptions
• Valuation bridge: pre- vs. post-restructuring enterprise value

Module 11: Distressed M&A and Asset Sales Modelling

• Sale of non-core assets or business units
• Carve-out and spin-off modelling
• Sale leasebacks and one-time inflows
• Valuation and impact on capital structure

Module 12: Equity Recapitalization Modelling

• Fresh capital infusion (debt, equity, hybrids)
• Rights issues, private placements, and rescue financing
• Dilution modelling and control changes
• Post-money ownership structure

Module 13: Bankruptcy Modelling

• Overview of court-led processes and key stages
• Modelling debtor-in-possession (DIP) financing
• Administrative claims and reorganization plans
• Exit financing and emergence modelling

Module 14: Sensitivity and Scenario Analysis

• Multi-variable sensitivity tables
• Scenarios: base case, liquidation, reorganization, recovery
• Visual outputs for negotiations and stakeholder impact
• Break-even analysis under different restructuring strategies

Module 15: Integrated Restructuring Model Build

• Building a comprehensive restructuring model from scratch
• Combining operational, financial, and capital structure strategies
• Modelling stakeholder outcomes and valuation impact
• Creating a user-friendly executive dashboard

Module 16: Final Case Study – Live Restructuring Scenario

• Participants model a distressed company and simulate restructuring
• Apply operational fixes, debt changes, and liquidity forecasting
• Create outputs for creditors and board presentation
• Deliver a short investment or recovery recommendation

 

Assessment and Certification:

• Hands-on modelling assignments for each module
• Final project: full restructuring model build
• Presentation or model walkthrough for peer/instructor review
• Certificate of Completion for successful participants

 

Delivery Format:

• Instructor-led (virtual or in-person)
• Excel-based templates for each module
• Industry case studies and real-life distressed scenarios
• Option for tailored delivery: e.g., retail, industrial, energy, or banking sectors
• Post-course model review and coaching (optional)

 

Pre-Requisites:

• Intermediate Excel and financial modelling skills
• Familiarity with corporate finance and debt instruments
• Prior experience with 3-statement modelling is recommended