Perspectives

Managing liquidity during distressed situations

This article examines several liquidity pitfalls that management teams should be cognizant of and, if possible, avoid altogether.

Case studies

How Tully’s coffee found liquidity without a traditional DIP loan

When Tully’s Coffee found itself in a serious liquidity crisis and facing Chapter 11 bankruptcy, Deloitte CRG stepped in to secure a merchant cash advance.

Fresh-Start Accounting Services

Services

Fresh-Start Accounting Services

Deloitte CRG

Deloitte CRG and professionals from across Deloitte are leaders in helping companies implement Fresh-Start accounting. Our team is “on the ground” with our clients bringing specialists in bankruptcy, accounting and valuation, IT, and Tax. Deloitte’s professionals have significant experience managing this event in some of the largest corporate bankruptcies in US history. From planning to systems readiness, to implementation and validation, Deloitte can help companies from start to “Fresh-Start”.

Implementing the plan of reorganization and revaluing your business

Recording the emergence from bankruptcy is one of the most complex and demanding accounting challenges an organization may face. It places significant demands on an organization’s management team to deal with the equivalent of a year-end close upon emergence, account for restructuring of legal entities, adopt the requirements of ASC 852 (formerly SOP 90-7) and establish the opening balance sheet of the successor organization.

Understanding the bankruptcy process and the related technical accounting requirements, obtaining a valuation of all the assets and liabilities of a business enterprise, and pushing the results down to every legal entity can be an enormous burden on financial, operational and systems management and their supporting teams. Completing the process as quickly as possible will allow management to move forward and focus on the operations of the newly reorganized business.

 

How we can help

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Fresh-Start: Implementing the plan of reorganization and revaluing your business

The Fresh-Start process necessitates two significant accounting events:

1. Recording the effects of a Plan of Reorganization

2. The revaluation of both assets and liabilities for debtors and non-debtors alike

These events are also typically coupled with a significant amount of merger and restructuring activity. Each event must be completed in accordance with accounting requirements.

Learn more about our Fresh-Start Accounting Services in the PDF available for download, including:

  • How we can help
  • The planning phase
  • The implementation phase
  • How to contact us for more information

As used in this document, “Deloitte Financial Advisory Services” means Deloitte Financial Advisory Services LLP, which provides forensic, dispute, and other consulting services, and its affiliate, Deloitte Transactions and Business Analytics LLP, which provides a wide range of advisory and analytics services.  Deloitte Transactions and Business Analytics LLP is not a certified public accounting firm. Please see http://www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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Services

Bankruptcy Accounting and Compliance Services

Deloitte CRG provides start-to-finish service, delivering effective and efficient solutions to a debtor in the Chapter 7 or 11 restructuring process.

People

Kirk Blair

Deloitte CRG | BA&C National Practice Leader

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Anticipating tomorrow’s complex issues and new strategies is a challenge. Reach new heights with Dbriefs—live webcasts that give you valuable insights on important developments affecting your business.Dbriefs offers live webcasts featuring practical knowledge from Deloitte specialists.

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Anticipating tomorrow’s complex issues and new strategies is a challenge. Reach new heights with Dbriefs—live webcasts that give you valuable insights on important developments affecting your business. Dbriefs offers live webcasts featuring practical knowledge from Deloitte specialists.

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