
Restructuring Plan Architect
Architect Chapter 11 restructuring plans and analyze creditor recovery scenarios
What You Can Do
This skill helps you design complete Chapter 11 restructuring plans, including waterfall analysis, creditor classification, and recovery projections. You can generate professional disclosure statements with detailed financial assumptions, feasibility analysis, and recovery calculations that withstand court scrutiny. The skill analyzes operational assumptions, debt scenarios, and creditor groups to produce plan documents that maximize creditor recoveries while maintaining operational continuity.
Features
Calculates distribution scenarios across secured, unsecured, and equity classes with exact recovery percentages and timing per creditor group
Creates complete, court-ready disclosure statements with financial exhibits, risk summaries, and statutory language compliant with Bankruptcy Rules
Analyzes whether your plan can be confirmed by examining cash flow coverage, asset backing, and covenant compliance over plan duration
Automatically classifies creditors by claim priority and generates detailed recovery tables showing payback percentages and dollar amounts
Builds projected balance sheets and cash flow forecasts under plan scenarios to demonstrate operational and debt-service viability
Models competing restructuring paths (asset sales, spinoffs, mergers, liquidation) side-by-side to highlight creditor preference and optimal outcome
Calculates absolute priority violations, fair valuation tests, and dissenting-class treatments to ensure plan structure withstands confirmation objections
Creates realistic restructuring schedules with key dates, cash-flow milestones, asset-sale triggers, and covenant performance checkpoints
Example Output
Waterfall Distribution Example:
Estate: $750M total proceeds
├─ Secured Lender (1L): $350M claim → $350M (100% recovery)
├─ Unsecured Trade Creditors: $800M claims → $240M pool = 30¢ per dollar
├─ Employee Claims: $100M priority claims → $100M (100% recovery)
├─ Equity: $0 distribution (wiped out)
Estate Costs: $25M deducted from distributions
Feasibility Summary Excerpt: Year 1-3 operating revenue: $450M-520M | EBITDA margin: 18-22% | Annual debt service: $65M | Covenant compliance: 2.5x min coverage ratio achieved
Recovery Comparison Table:
| Creditor Class | Reorganization Plan | Section 363 Sale | Preference |
|---|---|---|---|
| 1L Lenders | 95¢ (24-month) | 100¢ (3-month) | Sale |
| Unsecured | 28¢ (48-month) | 22¢ (6-month) | Reorganization |
| Equity | New equity | $0 | N/A |
What's Included
- Waterfall Calculator: Distributes estate proceeds across creditor classes in statutory priority order with detailed allocation schedules and claim-by-claim reconciliation
- Disclosure Statement Template: SEC/Bankruptcy Court-approved format with required sections: executive summary, plan treatment, assumptions, risks, and confirmation likelihood
- Financial Model Builder: Generates pro forma P&L, cash flow, and balance sheet projections under plan operations with covenant tracking and sensitivity analysis
- Feasibility Analysis Framework: Documents confirmation probability with cash-flow coverage analysis, absolute priority tests, and compliance certification
- Recovery Summary Generator: Calculates and displays payback percentages, net recovery amounts, and distribution timelines for each creditor class and subcategory
- Scenario Comparison Tool: Side-by-side modeling of restructuring alternatives (sell vs. reorganize, asset sales, mergers) with waterfall and feasibility for each option
Who It's For
- Restructuring and turnaround consultants
- Bankruptcy attorneys preparing Chapter 11 filings
- CFOs and financial management teams in distressed companies
- DIP and exit-financing lenders evaluating plan feasibility
- Investment banks and restructuring advisors on complex deals
Best For
- Designing feasible Chapter 11 reorganization or liquidation plans
- Creating court-compliant disclosure statements pre-filing
- Modeling creditor recovery under asset sale vs. reorganization scenarios
- Analyzing plan viability and confirmation likelihood before court filing
- Comparing restructuring alternatives to optimize stakeholder outcomes







