GBUS 8639 Corporate Financial Restructuring

The focus of the course will be on capital structures of business entities and the financial restructuring of those capital structures, both in court and out-of-court.The course will start with a review of financial instruments (leverage loans and high-yield bonds) and students will learn to interpret contracts governing these instruments (credit agreements, bond indentures, intercreditor agreements, security agreements and pledge agreements). Then we will study a variety of restructuring methods (out-of-work outs, distressed asset sales and Chapter 11 reorganizations). Finally we will study distressed debt as an asset class and market conventions for investing in distressed loans and securities.

The objective of the course is to familiarize students with financial, legal and strategic issues associated with the financial restructuring process. The main focus of the course will be on capital structures of business entities with a focus on in court and out-of-court restructurings. The course will discuss:

        Valuation

        Credit and leverage structures

        Responsibilities and rights of each constituent in the capital structure (the Company, the Board of Directors, senior secured and unsecured creditors and equity)

        Methods and tools of restructuring (consensual, Uniform Commercial Code and bankruptcy)

        Distressed investing

Elements of the Course Grade: Grades will be based upon:

        Team Midterm Project-30%

        Team Final Project-30%

        Class participation and preparation-40%