Investment Bankers & Distress: Protection and Optionality | Reed Smith Distressed Situations Podcast

Gordian Group President and Head of Restructuring and Distressed M&A, Peter S. Kaufman, is a guest on Reed Smith’s Distressed Situations Podcast. Peter discusses the value of investment banking services to distressed companies with Reed Smith partner Keith Aurzada. Peter also participates in a “lighting round” description of a number of investment banking terms and concepts (and the occasional movie reference).

Key Topics discussed and questions answered in this distressed situations  podcast include:

  • What is the function of the investment banker in general and how it relates to Gordian’s practice?
  • How does Gordian work with companies and boards?
  • How does Gordian provide a board with options and optionality?
  • Are investment bankers only interested in selling the company?
  • What questions do you ask Boards of Directors so that you can get an idea of what options you have?
  • Tell us about your favorite investment banking story

Listen now! Use the timestamp below to replay parts of the discussion.

00:00 | Intros 

07:17 |  You talked about two very important things – First is protecting the board from various constituents in the case that might make a claim that the board violated its duties for all stakeholders? How do you advise the board to maximize recovery?

08:16 | Options. There is a perception that the investment banker is solely focused on selling the company – how do you respond to that?

10:53 | You walk into a board of directors and the company is distressed, what are the questions that you are asking the board of directors so that you can get enough data to make a decision as to what your options are?

14:43 | So what you are talking about is that the typical senior lender or mezz lender takes a pledge of the equity on default, take control of the equity, and act as the board of directors?

15:16 | The typical provision that I see in this space is a 3 day notice – when there is a default…that the period of time that the sponsor has to evaluate whether or not to file for bankruptcy is that 3-5 days is pretty typical?

15:48 | Let’s talk about your favorite investment banking story.

17:21 | Lightning Round – Investment Banking style

18:31 | What do you see in the market going forward, what are your predictions and prognostications going forward?

20:30 | What do you think will happen in the distressed space…I think we are seeing a lot of artificial buoyancy where it will take a while for the extra liquidity and low interest rates to take effect, and the low default rates and bankruptcy filings will continue – and it is an end of 2022 issue, what do you think?

22:37 | Thanks for joining us!


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Gordian Group specializes in just this type of advice for Private Equity firms and other companies for which equity results matter.  We welcome the opportunity to discuss how we may be of assistance in the senior living space.  We look forward to our conversation. To set up a call, please contact Leslie Glassman.