An overview of Paladin’s bankruptcy services

1. Bankruptcy Services
Bankruptcy
Services

2. | Writing the Next Chapter of Your Business
| Case Studies
| Blocking & Tackling
| Select Experience
| Our Team

3. Bankruptcy Services
Writing the Next
Chapter of Your
Business

4. Bankruptcy Services
Positive Results of a Successful Bankruptcy
• Reposition/restructure the business for optimal long -
term success
• “Discharge” or shed liabilities and debts
• Options to reject unwanted leases or contracts
• Access to new financing sources and investor bases
• Messaging a reset or fresh start for negative PR or
relations with key stakeholders
• Efficient means of selling assets
• Potential for releases of liability for stakeholders
Pitfalls that Paladin Helps Avoid
• Failure to properly utilize the bankruptcy process to
benefit of the company
• Negative impact on the business
• Loss of control
• Litigation of claims against insiders or key stakeholders
• Relief from the automatic stay
• Negative PR from a poorly run or unsuccessful process
Using bankruptcy to achieve positive results
Bankruptcy is a legal solution to a business problem. The bankruptcy process provides an opportunity to
reposition the company on a new path forward. Paladin helps clients keep focus on the business.
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5. Bankruptcy Services
Challenges Facing Management
• Uncertainty of outcome
• Communications to employees,
customers, and vendors
• Retention of key employees
• Concerns regarding new ownership
• Satisfying performance goals
and obligations
Paladin In Your Corner
• Advocate - We understand the business challenges you face and bring
creditability to advocate the long-term needs of the business
• Education – We educate management on the process and options,
empowering important decisions and reducing uncertainty as to the path
forward
• PR and Communications – We work with the Company to craft PR and
communications plans to maximize visibility and reduce fear of the unknown
for all stakeholders.
• Retention Plans – We design vehicles to ensure continued retention where
needed, and advocate to get them approved
• Force Multiplier – We supplement existing staffing and expertise so we have
a direct understanding your needs and increase your ability to react quickly to
rapidly-changing situations
We See the Process through Your Eyes
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Paladin professionals have been through bankruptcy from the inside and in a wide array of circumstances.
We understand your reality and use that understanding to guide you through it.

6. Bankruptcy Services
• In an ideal world, what would the business look like?
• What operational changes can we accomplish before or during the bankruptcy proceeding that will
maximize the company’s strategic objectives?
• What costs/obligations can we shed as part of the bankruptcy process, and do we have time to line
up any alternatives?
• What growth opportunities should we focus on (new markets or customers), and can new financing
be sized to support that?
• Do we have any assets that if divested, would provide capital to invest in high-growth
markets/products?
Mapping Out a Strategy Before the Case Starts
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Filing for bankruptcy is the easy part. The real challenge is deciding how to use the filing as an opportunity to
reshape the future. Paladin has the operating and restructuring experience to help drive consensus around
the following opportunities:

7. Bankruptcy Services
| Company is an
even better partner
through this
process
| Business as
usual. Company will
be stronger through
this process
Keep
Employees
Working
Keep
Customers
Buying
Keep Vendors
Providing
Service
No Impact to
Partners
| Employees are
the foundation of
your business.
Keeping them
informed keeps
them focused and
working
We help you communicate with key stakeholders
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How will customers react? What can we do to make sure vendors continue to ship/service us? How do we
convince employees to stay? The critical element is communication – a clear, consistent, credible message
delivered through continuous outreach and in every interaction, both internal and external.
| Mitigate the
potential for
negative
perceptions arising
from any
misconception
Control the
Narrative
| Proactively
communicate with
key stakeholders
such as employees,
important vendors,
and local leaders
Keep Key
Stakeholders
Informed
| Ensure
customers that no
disruption in
services will take
place

8. Bankruptcy Services
We Lighten the Burden of the Bankruptcy Process
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The Bankruptcy Code gives companies many legal levers to help them reorganize, but in return, requires
substantial reporting, disclosure, and diligence from debtors. We can help lighten that load.
Workstreams that can be disruptive
• Bankruptcy disclosures and reporting
− First Day Motions
− Schedules/SOFAs
− Monthly Operating Reports
− Creditors meeting
• Cash flow management and forecasting
• Claims management and reconciliation
• Contract analysis
• Diligence requests from potential asset purchasers
• Ad hoc Information requests from creditors
How we can help manage the burden
• Guidance and resources to expedite data gathering
and manage around deadlines
• Long experience forecasting cash flow in bankruptcy
• Deep understanding of how best to present
information to external stakeholders and what
questions to anticipate
• Proactive “air traffic control” of inbound requests
and their fulfillment
• Extensive coaching ahead of interaction with
creditors
• Close coordination with counsel when issues arise

9. Bankruptcy Services
Bending the Process
to Business
Needs

10. Bankruptcy Services
There are many ways to emerge from bankruptcy. Which one is right for you?
363 sale
Plan of Reorganization
Plan of Liquidation
• In a 363 sale, a company runs a court-supervised auction process. This is the
quickest way through the process, but the ultimate purchaser and outcome is
uncertain
• A Plan of Reorganization collects assets and provides for distributions to
creditors through a series of “classes.” Plans often involve releases for
insiders and must be approved by the Court. This option takes many months
and is expensive but results in finality and certainty
• A Plan of Liquidation provides for the sale/liquidation of all assets, and
distribution of proceeds to creditors. This option involves more certainty than
a 363 sale but is more expensive and time consuming. However, we do a lot
of 363 sales and then POL after we sell the assets
Process is Important
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The bankruptcy process can be complex. Paladin knows how to use the process to fit business needs. One
important aspect of that is the cardinal rule: Do not commence a case until you know how you are exiting.
At Paladin, we advise with this rule in mind so that the process does not overtake the business.

11. Bankruptcy Services
Pre-Bankruptcy Chapter 11 Proceeding
File
Petition
Complete
Plan and Disclosure
Statement
Confirmation
of Plan
Pre-Bankruptcy
Planning
Statements
and Schedules
Financial
Reporting
Claims
Reconciliation
Plan &
Disclosure
Statement
Development Objections Balloting
Execution of
Emergence
Plan
Confirmation Process
Assess Financing Needs
Business Plan Development
Negotiate with Stakeholders and Committees
Claims Reconciliation
Emergence and
Fresh-Start
Reporting
Emergence
Emergence
Court and U.S. Trustee Supervision
Typical Chapter 11 Process
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12. Bankruptcy Services
Typical 363 Sale Process
Pre-Bankruptcy Chapter 11 Proceeding
File
Petition
Locate Stalking
Horse Bidder and
Negotiate Terms
Plan for Filing
Bidding
Procedures
Auction
Procedures
Approved
Auction Held
Objections
Contract
Assignments
Sale Approved Plan for Exit
(Dismissal, Conversion,
or Chapter 11 Plan)
Assess Financing Needs
Continuous Marketing Process
Negotiate with Stakeholders and Committees
Court and U.S. Trustee Supervision
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13. Bankruptcy Services
Chapter 11
Blocking &
Tackling

14. Bankruptcy Services
We can help transition Boards and the company into a filing
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Prepetition Planning
• Assess restructuring-related options, and drive consensus among stakeholders
• Facilitate and lead negotiations with secured lenders, equity holders, directors,
and management regarding restructuring planning
Governance and Process
• Experience working with complex and contentious Board dynamics
• Focus on fiduciary obligations and risks facing Boards of Directors and
management while in the critical zone of insolvency
Vendor Management
• Assess primary debts and obligations, and formulate strategies for addressing
through a process
• Experience managing claims and vendors prepetition in order to minimize
eventual claims and prolong cash runways
Marshal Resources
• Marshal and manage company diligence and information
• Preserve company resources and management time by acting as gatekeeper for
outside information pressures
• Our experience provides a force multiplier that allows management to continue a
focus on operations

15. Bankruptcy Services
We can help with Chapter 11 Liquidity & Financing
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13-Week Cash
Forecasts
• Generate simple, clear and accurate weekly cash projections
• Detailed projections of cash receipts and disbursements from operational data,
e.g., sales flashes, and purchasing forecasts
• Bankruptcy scenario liquidity projections
Variance Analysis
• Detailed variance reporting supporting enhanced learnings regarding key
economic drivers
• Identifies key operational issues in time to make necessary adjustments and/or
incorporate into emergence forecasts
DIP Facility Sizing
• Build on cash forecasts and variance analyses to develop DIP liquidity projections
• Experience and capabilities sourcing lenders to provide DIP financing based on
liquidity projections
• Negotiate terms of the DIP facility to support anticipated restructuring strategy
• Fully understand all the known and potential administrative claims and impact on
the restructuring options
DIP Lender Reporting
• Develop and report critical data and information required by DIP lenders
• Create “early warning” metrics and reporting to detect problems in time for
corrective actions to be taken

16. Bankruptcy Services
We can help with Bankruptcy Preparation & Post-Petition Reporting
First Day Affidavit
• The First Day Affidavit tells the story of the Company and its plans for
reorganization, forming the core of bankruptcy-related PR and press
• Experience leveraging Company learnings and diligence to prepare First Day
Affidavit, in regular consultation with the Board, management, and professionals
First Day Motions
• Assess Company needs for first day relief, ensuring smooth transition to
bankruptcy (e.g., pay wages, insurance, and critical vendors)
• Spearhead efforts with management and professionals to draft, support, and
finalize first day pleadings
Schedules, Statement
of Financial Affairs &
Monthly Operating
Reports
• Marshal Company records and diligence to prepare bankruptcy-related filings
(including Bankruptcy Schedules, Statements of Financial Affairs, and Monthly
Operating Reports)
• We focus on these items, so that management can focus on Company operations
341 & Debtor Interviews • Work with counsel to prepare the management team for the 341 and Debtor
Interview
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17. Bankruptcy Services
Bankruptcy Action Items
Gathering & Processing
Data
• Identify key company personnel with access to information
• Develop information extraction plan using a combination of formatted templates
and existing financial system extracts
• Interface with company IT/financial reporting leads to determine the most
effective sources of information
Payment & Receipt
Processes
• Identify all payments made within 90 days prior to potential filing date (one-year
insiders) and determine impact on filing date
• Identify all receipts 45 days prior to potential filing date - reclamation claims,
establish reclamation claims process communicate to appropriate company
personnel
• Identify all receipts 20 days prior to potential filing date - 503(b)9 claims and
determine impact on filing date
Internal & External
Relationship
Management
• Coordinate with operations staff and counsel to determine which, if any, special
categories of creditors or other agencies there will be
• Develop reporting packages for various stakeholders such as secured lenders,
bondholders, and trade creditors
• Assist counsel and the company in meeting court-required financial reporting
guidelines
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18. Bankruptcy Services
Bankruptcy Action Items
Contract Analysis &
Procurement
• Analyze executory contracts and leases for assumption, rejection or assignment in
First Day Motions
• Create central contract repository that can be used for future contract
maintenance and as the basis of executory contracts
• Identify key contract personnel and databases used for managing contracts
• Work with key company stakeholders to develop a common medium for
maintaining contract information
Third-Party Relationship
Management
• Assist in the selection and management of third-party vendors as claims agent,
printers and voting agent
• Evaluate capacities
• Develop communications plan among parties in interest
• Oversee operational quality and ensure seamless transition between debtors and
other parties
Case & Claims Processes
• Establish case management process
• Develop case calendar and major milestones
• Establish claims administration database
• Oversee the process to ensure that key stakeholders are involved
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19. LOS ANGELES
633 W. 5th St, 28th
Floor
Los Angeles, CA 90071
213.320.5500
NEW YORK
845 Third Ave, 6th
Floor
NY, NY 10022
929.292.9500
DALLAS
5050 Quorum Dr, Suite 700
Dallas, TX 75254
469.290.9200
CHICAGO
200 South Wacker Dr, 31st
Floor
Chicago, IL 60606
773.570.7500
HOUSTON
515 Post Oak Blvd, Suite 910
Houston, TX 77027
713.589.5050
Thank You
We look forward to working with you
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