Moelis restructuring

Moelis restructuring

Initially backed by financial sponsors First Reserve and Trilantic, Templar established a quality acreage position in the mid-continent in On August 1,Dex Media, Inc. In reaction to those trends, Dex developed and marketed digital advertising solutions, but the transition to digital products was slower than originally anticipated.

A strange fact about the recently promoted MDs at Moelis & Co.

As a result, Dex effectuated a merger with Supermedia Inc. At the end ofDex faced a maturity wall and leverage levels would not support a complete refinancing of commitments. Furthermore, the transaction enabled the company to deepen its commitment to help local businesses thrive by developing and providing marketing solutions to help them grow their organizations.

On December 7,LightSquared Inc. Due to the opposition of several large holders, LightSquared was forced to file for Chapter 11 to maintain control over its assets.

moelis restructuring

When LightSquared set out to launch a nationwide, wholesale wireless LTE network, federal regulators denied attempts to clear the Plan, citing concerns about potential GPS interference. Bankruptcy Court. These extensive discussions resulted in a near-fully consensual plan of reorganization, offering full recovery to all existing debt and preferred equity holders.

Additionally, the Firm submitted at least three formal valuation reports and provided testimony in support of multiple Plan proposals and deposition testimony on a number of matters at least nine times during the course of the Chapter 11 proceedings. This allowed the company to pursue alternative investment opportunities and capitalize on its valuable wireless spectrum licenses. Since the Group was formed init had grown principally by acquisitions, having purchased over businesses.

Significant changes in the commercial environment coupled with an over-levered capital structure drove Punch to initiate a review of its capital structure, ultimately resulting in a comprehensive financial restructuring which created a more robust and sustainable debt structure.

The transaction represents one of the most high-profile European whole-business securitization restructurings in The Court largely found in favor of MPM, saving the estate hundreds of millions of dollars while providing long-term financing to fund its business operations and future growth.

July December April October Clear all.When he started on Wall Street, liquidity was a major issue for C-suites, and access to good stock market information was hard to come by. Moelis is less worried about his business than those corporations that have loaded up on cheap debt during the era of low interest rates.

The world has changed," Moelis said at the Baron conference. Capital is no longer a barrier. Capital is being thrown at you by multiple sources. And that may soon become a big problem, Moelis said, due to the direction in interest rates. He provided a note of caution about debt at the Baron conference, as well as some other lessons on capital markets deal-making, a few of them unconventional.

Moelis is intimately familiar with high-stress debt situations, from his representation of Trump at a time when Trump companies were facing bankruptcy to representation of Dubai went it was staring down hedge fund creditors in the late s. He expects a wave of indebted companies to face critical restructuring issues before the current economic cycle resets.

The reason: interest rates. The Federal Reserve didn't raise interest rates at its meeting last week, but it is expected to raise rates one more time this year when it meets again in December. It won't take a major move up in interest rates to start causing trouble in the high-yield debt marketplace, according to Moelis. Moelis pointed to the current default rate in the high-yield bond sector as a warning sign. Currently, only about two percent of paper defaults. During the financial crisis, the default rate was above 10 percent.

moelis restructuring

While 10 percent might not even seem that high, Moelis said the important point is that "there is a lot of room between two percent and 10 percent. The concerns Moelis has about levered companies is reflected in research from Moody's Investors Service.

Moody's noted earlier this year that the ratio of corporate debt to GDP was at a record, and noted that the previous times the debt-to-GDP ratio was this high all coincided with market crises and recessions —and Yet in all of those previous three cases, the default rate posted was substantially higher — Moody's estimates that the high-yield default rate would be in the range of two percent; it has been roughly 3 percent this year.

The rating agency also predicted that a "particularly" large wave of junk bond defaults is coming. That might be good for him — his bank has one of the top restructuring businesses on Wall Street — but it also will place many companies on the fine line between existence and extinction.

Moelis has made some good calls in recent years. Among them, one from September he predicted Trump would win the presidency. Working with Trump led, not surprisingly, to another "art of the deal" issue — getting Trump to pay Moelis for his banking services.

Nudged on by Ron Baron, Moelis told attendees at the Baron conference a story that has become one of his staple anecdotes about his relationship with Trump. Moelis met Trump in when he had just started working for Donaldson, Lufkin and Jenrette, and hadn't done banking for him yet.

We met in one of his conference rooms and after 20 minutes, classic Trump, he looks at me and says, 'How much? Moelis threw out a number — "looking back I should have just doubled it," he recalled at the Baron conference.

Moelis had his doubts, working for a new firm and wondering whether it was even legal to flip a coin for a million dollars, and wondering whether he could ever tell his new colleagues. But "I thought if I don't flip, I lose, so it is at least The coin was legitimate. But it wouldn't matter.

moelis restructuring

Moelis flipped the coin in a high arc, too high, he soon realized. Moelis said that to this day he has told Trump, "If I really lost, you would have left it on the floor.The sources said NMC had hired Moelis in relation to its ability to meet debt obligations. It had earlier said it was focused on providing clarity to the market as to its financial position. The company's shares have lost more than half of their value since last December when US based short-seller Muddy Waters first questioned its financial statements.

The size of the loans could not be immediately determined. Moelis did not immediately respond to a request for comment outside working hours. The company's troubles have also been compounded by doubts over the size of shareholdings of major investors, including founder and former co-chair BR Shetty and former vice-chairman Khaleefa Butti Omair Yousif Ahmed Al Muhairi.

These issues are also being looked into under a separate legal review. The IEA report added to downward pressure caused by rising The company will use the funds to further invest in the platform's The three companies are members of the Mohammed bin Rashid Innovation The initiative is an appreciation for the frontline workers, everyone The measure was put in place to ensure social distancing and protect Senior Federal Authority for Identity and Citizenship official Results were available within 10 minutes.

Coronavirus: UAE announces new cases.

Restructuring offers growth for Moelis in Brazil

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Moelis on the Prospects for M&A in a Trump Administration

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Service Providers: Restructuring in a Time of Need

Search the FT Search. World Show more World. US Show more US. Companies Show more Companies. Markets Show more Markets. Opinion Show more Opinion. Personal Finance Show more Personal Finance.Get access to all our content — subscribe today 30 day free trial. Salgado-Gama points to the fact that separating liabilities in divestitures is complex in Brazil.

At the moment they lose everything and it can lead to a situation where they can behave in a kamikaze way because they have no downside — and encouraging more rational behaviour from the owners would also be helpful for the companies involved.

The office was the 15th in the Moelis network — there are now 17 — and it is still the only office in Latin America. Salgado-Gama says founder Ken Moelis saw advantages in opening up at a time when the economy was floundering. The firm has managed to win some of the highest profile mandates — including advising Petrobras in on its debt strategy when it was unable to get audited accounts signed off, which was threatening to trigger a default.

Moelis is also advising joint owner Vale on the Samarco dam-collapse situation — with Rothschild advising the other joint owner BHP, and mining company Samarco being advised by JPMorgan. Guazzelli says the flow of restructuring deals remains strong. However, he pushes back on the widespread perception that Brazilian companies are over-leveraged. To receive more Emerging Markets stories, sign up to our alerts.

We use Cookies. If you're happy with cookies, continue browsing. Emerging Markets Latin America. High-profile mandates The firm has managed to win some of the highest profile mandates — including advising Petrobras in on its debt strategy when it was unable to get audited accounts signed off, which was threatening to trigger a default. However, in the shorter term, Moelis expects to be kept busy with restructuring mandates.Real change has come to retail — and really fast.

The outbreak of the coronavirus and the attendant shutdowns that ripped across the globe are simply too much for most businesses to endure. Both supply and demand have collapsed at once — an unprecedented situation that has companies that were in expansion mode just a month ago hunkering down and trying to make sure they have enough cash to pull through.

In the spotlight now is Neiman Marcus Group, which has been struggling for years with a mountain of debt following two private equity buyouts and is now considering its options and having early talks with its term loan lenders about lining up financing for a possible bankruptcy.

Finding alternative financing will be critical as options, like debt markets, are now closed and near-term covenant defaults may make it impossible to access new capital. Most big U. The mass retailer said its comparable sales in apparel and accessories are down more than 20 percent so far this month. Moelis is working with companies now to prioritize payments to satisfy employees, suppliers and investors and going week by week while also planning for the months ahead to see if the sales declines will breach debt covenants.

The restructuring specialist also pointed to the specific challenges facing apparel retailers, including:. Restructuring is its own specialty in the financial world. By subscribing, you agree to our Privacy Policy and Terms of Use. WWD logo. Business Financial. Moelis' Bill Derrough. View Gallery. Coronavirus Neiman Marcus. Essentialist Today's Must Read.

Fashion Bridget Foley's Diary: I. Sign Up. Social Studies. Financial influencers have gained authority amid coronavirus. After lockdown, will men still want to buy suits?

But that was before the coronavirus had men WFH for weeks in sweatpants and T-shirts.

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