The restructuring (RX) group plays a critical role in assisting distressed companies in reorganizing their financial affairs and revitalizing their financial health.
RX differs from other divisions due to its unique intersection of law and finance, primarily manifesting in the form of reorganizations, liquidations, and bankruptcy proceedings.
The core responsibilities of professionals in RX encompass negotiating with creditors, formulating comprehensive financial restructuring plans, and facilitating the sale of distressed company assets. The complexity of the restructuring process often correlates with the intricacy of the company's capital structure; simpler capital structures typically translate to simpler restructuring efforts.
The specific types of deals undertaken by RX can vary significantly depending on the unique needs of a distressed company and the state of its balance sheet. The primary division within RX often revolves around in-court and out-of-court solutions, with in-court solutions typically involving bankruptcy proceedings.
In the realm of restructuring, the majority of the work is often concentrated among a few prominent firms, including PJT, Houlihan Lokey, Evercore, among others.
For those aspiring to work in RX, Restructuring Investment Banking 101 covers ground basics to RX, as well as the array of solutions involved players can choose to undergo. Distressed Debt Analysis by Stephen Moyer is widely regarded as an essential read for gaining expertise in all things related to distressed debt.