Corporate Restructuring

by Blatz, Michael; Kraus, Karl; Haghani, Sascha

• ISBN13: 9783540330745
• ISBN10: 3540330747
• Format: Hardcover
• Copyright: 2006-04-15
• Publisher: Springer Verlag

Summary

The number of corporate crises has increased significantly in recent years. The companies affected must be restructured, and it has become conventional wisdom that they must do more than improve operations and realign their strategies. Companies today must also focus on reorganizing their finances, as this is a fundamental part of restructuring. In order to do so, they must master the use of corporate financing tools. This book discusses the related challenges and provides ways to overcome them. In doing so, the focus is always on increasing the company's value. The book uses case studies to show how financial restructuring can be implemented in practice, thus paving the way for successful expansion. The book is written for restructuring professionals who want a detailed overview of new developments in corporate recapitalization.

Table of Contents

PART 1: THE SUCCESS FACTORS OF RESTRUCTURING IN GERMANY — NEW CHALLENGES FOR CORPORATE FINANCING	1	(74)
Innovative Crisis Management Concepts An Up-to-Date Status Evaluation	3	(20)
MICHAEL BLATZ, SASCHA HAGHANI
1 Preamble	3	(3)
2 The Traditional RBSC Approach to Restructuring	6	(2)
3Innovative Ways out of Crisis Situations	8	(9)
4 Summary: Consolidate Quickly, Return to Growth Quickly	17	(6)
Corporate Restructuring in Germany — The Economy Remains Tense, but Restructuring Offers Definite Opportunities	23	(14)
BERND BRUNKE, STEPHAN FOERSCHLE, SASCHA HAGHANI, FLORIAN HUBER, NILS VON KUHLWEIN, AND BJÖRN WALDOW
1 The State of the German Economy	23	(3)
2 Restructuring Under the New German Insolvency Law Beggars Still Can't Be Choosers	26	(2)
3 Distressed Capital — The Future of Corporate Financing in Germany?	28	(4)
4 Restructuring Success Factors	32	(3)
5 Conclusions and Outlook	35	(2)
Recapitalization — New Corporate Financing Options	37	(6)
SASCHA HAGHANI, MAIK PIEHLER
1 Financial Reorganization as the Third Restructuring Dimension	37	(1)
2 Alternative Financing Options Compete with Conventional Loans	38	(2)
3 A Concept Providing a Foundation for Competitiveness and Growth	40	(2)
4 Conclusions and Outlook	42	(1)
From Crisis to Value Increase: How Companies Can Attain High Profits During a Restructuring Phase	43	(12)
KARSTEN LAFRENZ
1 Crisis Companies Have to Fulfill High Profit Expectations	43	(2)
2 Restructuring Companies in Crisis	45	(4)
3 Increasing Corporate Value Even (and Especially) During the Restructuring Process	49	(2)
4 Summary: Restructuring Yields High Value increase Potential - Companies Simply Have to Go After It	51	(4)
The Financial Restructuring of Medium-Sized Companies	55	(10)
ROBERT SIMON
1 The Breakdown of Trust Between Banks and Business	55	(1)
2 Potential Courses of Action for the Banks Involved	56	(2)
3 Potential Courses of Action for the Company in Crisis	58	(2)
4 The Prerequisites for a Persuasive Restructuring Concept	60	(1)
5 Agreements with Financial Partners	61	(4)
Changes in Due Diligence Requirements	65	(10)
NILS VON KUHLWEIN
1 Due Diligence in a Time of Change	65	(1)
2 Types of Due Diligence	65	(5)
3 Special Requirements During Restructuring and Insolvency	70	(1)
4 New Trends in the Due Diligence Process	71	(4)
PART 2: THE RESULTS OF THE LATEST SURVEYS PERFORMED BY ROLAND BERGER STRATEGY CONSULTANTS	75	(30)
German-European Restructuring Survey 2004/05 – Results and Recommended Courses of Action	77	(12)
MAX FALCKENBURC, ICO-KAI KUHNT
1 Survey Results	77	(9)
2 Summary Survey Results and Recommended Courses of Action	86	(3)
Distressed Debt in Germany from the Banks' Point of View	89	(16)
NILS VON KUHLWEIN, MICHAEL RICHTHAMMER
1 Introduction	89	(1)
2 Key Findings of the Survey	90	(12)
3 Conclusions and Outlook	102	(3)
PART 3: PRACTICAL FINANCIAL RESTRUCTURING EXAMPLES – CASE STUDIES	105	(70)
Financial Restructuring of a Pharmaceutical Company	107	(10)
KARL-J. KRAUS, RALF MOLDENHAUER
1 The Company	107	(2)
2The Components of the Restructuring Concept	109	(2)
3 Financial Restructuring	111	(6)
Reorganization and Capital Market – Growth Financing Shores Up the Restructuring Process	117	(16)
SASCHA HAGHANI, MAIK PIEHLER
1 Introduction	117	(1)
2 Initial Situation	117	(3)
3 The Restructuring Process	120	(11)
4 Conclusions and Outlook	131	(2)
Restructuring and Recapitalization of the HD Co. Group	133	(14)
MICHAEL BLATZ, CHRISTIAN PAUL, JULIAN ZU PUTLITZ
1 Introduction	133	(1)
2 Initial Situation at the Beginning of the Restructuring Process	134	(3)
3 An Overview of the Restructuring Concept	137	(7)
4 Experiences with the Transferability and Applicability of the Recapitalization Approach	144	(3)
Return to Growth – The Wind AG Restructuring and Recapitalization Process	147	(10)
UWE JOHNEN, JÜRGEN SCHÄFER
1 Introduction	147	(1)
2 The Situation at the Beginning of the Restructuring Process	147	(3)
3 Overview of the Restructuring Concept	150	(5)
4 Transferable Experiences for Application of the Recapitalization Approach	155	(2)
The Utilization of Divestments in KML's Group Restructuring Process	157	(18)
GERD SIEVERS
1 Introduction	157	(1)
2 Corporate Profile and Development Before the Crisis	158	(2)
3 The Crisis and the Reorganization Concept	160	(2)
4 The Divestment Object Selection Process	162	(8)
5 Findings and Approaches for a General Model	170	(5)
ABOUT THE AUTHORS	175