Case Studies

Out-of-Court Restructuring / Opening Balance Sheet

Background

A private equity owned, oilfield services company encounters declining revenues and recurring losses due to challenging conditions in the oil and natural gas industry.  As a result, the Company is unable to comply with debt obligations and explores available strategic options, which include restructuring the debt through an acquisition led by the senior lender group.  Paradigm is engaged to assist Management with applying purchase accounting to this transaction and preparing the opening balance sheet.

Solutions

  • Preparation of the opening balance sheet model, including calculating and supporting all required adjustments
  • Preparation of the technical accounting position paper for the application of ASC 805
  • Drafted required footnote disclosures
  • Other ad hoc technical accounting assistance

Outcomes

Paradigm’s depth of experience with out-of-court restructurings allows the team to work quickly to build the opening balance sheet, as well as address the unique technical accounting issues present in these deals and support external audit efforts.  This allows the finance team to focus on other near-term priorities associated with the restructuring plan to ensure success is achieved post-close.

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