Difficult Decisions, Taken
Wind downs and restructurings – an alternative for protecting value and assisting managers, investors and directors
Many offshore and onshore vehicles inevitably enter into a management led wind down or require restructuring to survive. This may arise in consequence of general market downturns, individual strategy decisions or the approaching end of a fund’s planned or useful life. The myriad of issues such as suspensions, gates, failed restructurings, side pockets, illiquid assets, disputed valuations, redemptions in kind, disputes over side letters and threats of litigation, petitions and complaints are all too familiar. Any of these elements of distress may give rise to difficulty. Notwithstanding these difficulties existing management and director led wind downs and restructurings are often preferred by investors to the alternative Court led processes, so long as they continue to have trust and confidence in the outcome.
The principals of FFP have the specialist knowledge and crisis management experience to help in distressed situations. Developing, implementing, adhering to and monitoring a realistic realisation strategy is always in the interests of all parties. The addition of an experienced, objective third party can bring a renewed level of confidence and communication, to what are often very pressured and sometimes fractious and overwhelming situations.
Frequently our role involves restructuring operations, transitioning management and overseeing litigation. We are often brought in by stakeholders to replace existing board directors and general partners in crisis situations and are involved in a number of multi-jurisdictional contentious restructuring and wind down engagements.