claro corporate restructuring overview

Corporate RestructuringOverview

The Claro Group

2

Experienced Leadership Team with a proven record of achieving results for clients in over 75 engagements

Committed to provide senior level attention and accountability to each engagement

National focus with staff in New York, Chicago, Los Angles and Houston

Corporate Restructuring Services (“CRS”) combines deep industry knowledge with restructuring expertise

CRS is operationally-focused through disciplined performance improvement analytics to ensure the enterprise is restructured to best position itself for future profitability

CRS has the valuation and capital markets knowledge to craft a sustainable capital structure which provides the restructured enterprise the financial underpinning to move forward to executing its business plan

CRS has a breath of experience in restructuring related areas such as forensic accounting, litigation support, post-confirmation trusteeships and claims settlement and reporting

Resources of a 75 person consulting practice balanced in serving both debtor and creditor constituencies with a dedicated staff of 12 senior staff 100 percent dedicated to CRS

Corporate Restructuring Services

3

The Claro Group is dedicated to optimizing the enterprise value of distressed companies and providing tangible value to the constituents we represent

Our consultants have functional experience in all aspects of the restructuring and bankruptcy process and combine such knowledge with specific industry experience and expertise in performance improvement

We have a record of negotiating with multiple constituencies which are frequently adverse towards a settlement which reflects the economic reality within the framework of the law and the governing credit arrangements

We communicate with our clients to ensure they comprehend the facts and circumstances so they are prepared to act in a manner to preserve enterprise value

We are mindful that we must add value to an engagement and are willing to tie results to our economics

We are privately owned and our success is tied to our ability to deliver value with clarity and integrity

While we are young, Consulting Magazine named us “One of Seven Small Jewels in March 2008

The Claro Group Difference

4

Claro will immediately analyze the financial and operational situation to develop the strategies and options available and to be accessed

• We have worked and have credibility with the secured lenders, bondholders, vendors, hedge funds and private equity to quickly address critical issues

• Our record of working in difficult time pressured situations and ability to clearly communicate the facts at hand will serve to expedite agreement to near and long term goals

• We will strive to enhance the operations to affect a turnaround and gain sufficient time to maximize value

• We will obtain needed liquidity to ensure sufficient runway to a successful turnaround

• When appropriate, we will rely on the skills and energy of existing management and seamlessly mold our team to support them in the turnaround

• We will provide functional knowledge and experience to fill key roles as needed

• We will transition to permanent management and control as soon as practical

• We will sell surplus assets or liquidate the enterprise if it is concluded that is the best option

Claro Capabilities: Understanding Issues

5

Claro has experience and a proven record in negotiating and implementing restructurings including:

• Pre-arranged and Pre-packaged Chapter 11 restructurings

• Chapter 11 filings including Liquidating 11s

• Crisis Management / CRO roles

• Bankruptcy Trusteeships and Examiners

• DIP financing

• Out of Court Restructuring

• Credit Facility Covenant Modifications and Forbearances

• Bond Indenture Modifications

• Exchanges

• Debt for Equity Swaps

• Rights Offerings

• Exit Financing

Claro Capabilities: Restructuring Experience

6

Claro understands that integrity and clarity is the cornerstone of a successful outcome. Our engagement occurs during a time of crisis where reliability and credibility of the Claro team will have a meaningful affect on the outcome and results. To that end, Claro will:

• Provide analytical discipline which is actionable and fact-based

• Provide advice that is objective and supportable

• Accept assignments where we can add value to the enterprise

• Manage and respect the relationships with all stakeholders

• Foster a dialog which is constructive, respectful and conducive to value creation

• Honor the trust of our clients

Claro Statement of Values

7

Corporate Restructuring Services

• Crisis Management• Exploring Strategic

Alternatives• Operations

Stabilization• Employee

severance & retention plans

• Negotiations between parties in interest

• Covenant Negotiation

• Financial Reporting

• Liquidity Enhancement

• Working Capital Improvements

• Business Plan Development

• Integrated Financial Projections

• Debt Restructuring• Financial &

Operational Due Diligence

• Asset Valuations

• Supply Chain and Strategic Sourcing

• Demand Mgt• Profitability

Enhancement• Quality of Earning

Analysis• Vendor Negotiation

& Management• Claim Analysis and

Management• Maximize Recovery

from 3rd Parties including Insurers

• Trustee• Advisor• Examiner• Responsible Party• Receiver• Wind Downs• Liquidations• DIP Sourcing &

Negotiations• Exit Financing• Contract/Lease

Analysis & Negotiation

• POR/POL Negotiations

• Going Concernv. LiquidationValuations

• Conducting 363Asset Sales

• ConstituencyManagement

• Preferences• Insider Transfers• Causes of Action• Asset Searches• Expert Testimony• Fraudulent

Transfers• Zone of Insolvency

Interim

Management

Financial

Restructuring

Operational

Movement

Bankruptcy

Roles

Bankruptcy

Litigation

Claro’s Corporate Restructuring Group provides the following services to companies (pre and post petition) and creditors

8

Claro’s restructuring team members have provided numerous company side and secured and unsecured creditor representation in the following industries:

Financial Services

Healthcare

Energy

Manufacturing

Real Estate

Retail & Restaurants

Services

Telecom & Technology

Corporate Restructuring Industries

9

Corporate Restructuring – Advisors to Debtors

Note: Claro current professionals served these clients while employed at other firms

WW Steel

Served as the Debtor’s Advisor

Served as the Debtor’s Advisor For Vending Data





Vending Data

Selected to Serve as Chief Operating Officer

To Citi Residential Lending, Inc.


Allied Defense



First Wave Marine Cleartel



Bluewater Thermal

Services

Triboro Wholesale

10

Enron

Served as the Debtors’ Advisor

Enron Cheniere Energy


Claro current professionals may have served certain of these clients while employed at other firms


Corporate Restructuring – Advisors to Debtors




Silver State Helicopters

11

Served as the Creditors’ Advisor





Corporate Restructuring – Advisors to Creditors


Graphic Scanning




Zybernaut Inc.





http://www.seitel-inc.com/default.asp

12

Corporate Restructuring – Advisors to Creditors


KWELM

Represented Unsecured Creditors Pursuing Claims

From Insolvent Estates and Schemes Arranged in

UK



UK



UK



US



US



UK



UK



US

Reliance Insurance

Company



UK

English & American

Insurance Company

The Home Insurance

Company

Southern American

Insurance Company

Mission Insurance

CompanyOIC Runoff Limited

Sovereign Marine &

General Insurance

Company




DVI Benedek BroadcastingTelergy

13

www.theclarogroup.com

http://www.theclarogroup.com/