With a sharp increase in situations giving rise to the need for restructurings and workouts, the immediate goal is to streamline a business, dispose of non-core assets in a manner so that trailing liabilities associated with such assets are minimized, and free up cash. On the other hand, buyers of the non-core assets will use the inability of the business to retain any trailing liabilities as a tool for minimizing the price paid for these assets. Finally, the management teams and restructuring professionals retained to develop or execute these plans required to achieve these goals often face unique exposures during this period. The conflicting demands of multiple stakeholders, many of whom have experienced financial losses as the result of the events giving rise to the need for a restructuring or workout, can often be contentious.
Ambridge’s Transactional Insurance products can serve as a tool to minimize the retained liabilities of the business being restructured or worked out while providing financial protection to the buyers of these assets so that fair value is received by the seller. In addition, our products can provide protection for the unique exposures faced by professionals or other individuals retained for the restructuring or workout.