Quest assists clients in turnaround situations by developing and implementing plans to restructure the Company's capital structure, negotiating with constituents including secured and unsecured creditors and arranging, where necessary, new credit facilities and equity sources of financing.

• Reviewing indentures, credit agreements, lease financing agreements, inter-creditor agreements,  covenants, blocking rights and local insolvency laws
• Developing strategies for negotiation in consultation with client's legal advisors
• Developing market sense through conversations with distressed debt investors, banks and capital market analysts
• Preparing or validating detailed cash flow forecasts
• Identifying opportunities to improve cash flow from operations
•  Recommending action plans and negotiating strategy, including use of interest moratoriums, change of venue, transfer of assets, consents and waivers and other appropriate actions tailored to the case specifics
•  Leading negotiations to reach consensual agreements to restructure

Examples of these activities include:

•  Preparing or validating detailed cash   flow forecasts
• Identifying opportunities to improve cash flow from operations
• Identifying opportunities to sell assets or raise new financing
• Organizing the interim management team
• Handling all the specialized activities related to the restructuring or the insolvency process so management can remain focused on managing the business
• Developing operating plans working closely with incumbent management
• Retaining recruiters, select and train new managers as appropriate
• Leading negotiations with customers, suppliers, landlords, and creditors
• Negotiating employment contracts with key managers including design of key employee retention and incentive programs
• Communicating with constituents

Successful Chapter 11 proceedings require advance planning.

Major activities include:

• Determining which entities will be filed
• Determining best jurisdiction for filing
• Assessing impact of filing on the various business assets
• Assessing impact of filing on cash management systems
• Identifying critical vendors and ensuring continuing services and products required
• Determining requirements and working with counsel to prepare first day orders
• Determining business strategies to minimize negative impact of filing
• Understanding cash flows of operating the business following filing
• Arranging for DIP financing if required
• Developing communication plans for customers, creditors, employees and shareholders
• Preparing Schedules and Statement of Financial Affairs
• Preparing list of Creditors
• Developing plans for rejection of executory contracts
• Conduct negotiations with appropriate constituents to achieve a pre-packaged arrangement that
• could dramatically reduce time and expense of Chapter 11 proceedings 

Our familiarity and experience reorganizing companies in the U.K. and Europe allows Quest to perform comparable pre-planning for complex cross- border transactions.

Quest develops the business aspects of the Plan of Reorganization in conjunction with debtors counsel and negotiates with the various constituents as required to Confirm the Plan. This allows for the company to emerge with an appropriate capital structure and a plan that will ensure a high chance of long-term operating success.

Viable major activities include:

• Reviewing indentures, credit agreements, lease financing agreements, inter-creditor
• agreements, covenants, blocking rights and local insolvency laws
• Developing strategies for negotiation in consultation with client's legal counsel
• Developing market sense through conversations with distressed debt investors, banks and capital markets analysts
• Preparing or validating detailed cash flow forecasts over a multiple-year period
• Testing viability of new capital structure
• Retaining and managing activities of independent appraisers, business valuation consultants,
• liquidators and administrators
• Taking positions as directors of companies to help manage the re-organization process when appropriate

With extensive industry operating experience, we focus on formulating realistic, achievable, strategic business plans that ensure the company's solvency and create future stakeholder value. Quest has demonstrated its ability to ensure that the company's business model is sound and survives after the restructuring is complete.

The process includes:

• Reviewing business plans and strategies
• Carrying out competitive assessments, benchmarking and other techniques to assess the company's strategic position
• Applying industry specific knowledge of our staff in selected industries
• Accessing other experts for other industry analyses
• Interviewing management and running "brainstorming" sessions to develop new ideas
•  Overseeing the implementation of new strategies
•  Preparing succinct yet comprehensive written business plans as a blueprint for action

Quest personnel have extensive experience managing the claims resolution process. From mega-cases to small bankruptcies, claims resolution is an important process that must be completed and Quest personnel provide guidance and support to do so. Working with the claims administrator, we quickly cull through the claims and categorize them. We work with employees and claimants to resolve claims quickly and process motions to approve settlements, and object to claims filed where required.

Quest professionals have extensive Board experience and frequently become board members and participate on committees to manage the turnaround process. We believe that effecting change at the top is required and we are willing and able to serve in these capacities in the US, U.K. and Europe. We are often invited to join boards by former and current clients in situations where companies require continued guidance and monitoring. Our restructuring and operating experience increases board effectiveness and helps protect and preserve shareholder interests in these situations.

In the U.K. and Europe, Quest has taken the lead, serving as Directors in troubled situations in which solvency laws can create personal liability where continued trading is permitted. We have found that in order to effect change it is necessary to step into the shoes of the officer or director in order to control appropriate corporate governance. In contrast, our competitors, only wish to advise and remain unwilling to assume operating positions. Willingness to serve rather than merely advise gives us the opportunity to effect change and maximize constituent recoveries.

Quest Administrative Services, LLC provides a cost efficient turnkey back office solution to entities that are emerging from Chapter 11 or completing an out of court restructuring.  These entities require a variety of back office services but based on the level of activity, many incur excessive costs to retain an experienced team on a full-time basis.

Quest offers a complete back office solution or the ability to obtain only those services required in each case by Trustees, Plan Administrators and Boards of Directors.  These services can be made available on an as needed basis to manage the business needs for the duration of the case.

Services that can be provided include:

• Accounting and Financial Reporting

1. Public or Private Entities
2. Bankruptcy Court Reporting
3. Internal Control, Design, Documentation and Implementation
4. Sarbanes Oxley Compliance

• Budgeting
• Treasury and Cash Management
• Accounts Payable Processing
• Management of Claims, Interests, Capital Accounts and Distributions

1. Communicating with Claim Holders to Resolve Claims
2. Maintaining the Claims Register
3. Managing Claim Transfers
4. Managing the Capital Accounts Register
5. Processing Interim and Final Distributions

• Tax Compliance
• Investor Relations

1. Managing Website to Disseminate Information to Stakeholders
2. Handling of voice-mail box, e-mails to respond to Stakeholder and Creditor Questions
3. Issuing Press Releases

• Facilities Management
• IT Services
• Disposition of Miscellaneous Assets
• Document Management and Retention
• Electronic and Hardcopy Data Storage
• Litigation Support

1. Working with Outside Counsel to Pursue Litigation and Preference Claims
2. Analysis of Executory Contracts, Rejecting, Assuming, Assigning Actions

• Representative cases that this team has managed include:

1. Adelphia Communications Corporation
2. Adelphia Recovery Trust
3. ACC Claims Holdings, LLC
4. Doral Creditors Trust

Summary of Approach

As the Plan or out of court restructuring is being finalized, Quest personnel work together with management, incoming trustees, plan administrators, boards of trustees/directors and case professionals, to assess the services and administrative functions required and determine the most efficient way to perform all required back office functions.  Our team will quickly identify services needed and develop a proposal to provide these services either on a fixed monthly fee or on an hourly basis.

• Once the services are agreed upon, policies, procedures and internal controls will be developed to provide the control required by our client and followed by our team to provide a seamless transition to operate on a going forward basis.  This phase usually requires establishing new bank accounts, identifying and being prepared to transition existing IT systems, estimating unresolved claims, identifying required reserves, planning to transfer and maintain control over historical documents.
• Once the Plan goes Effective, upon approval by our client, Effective Date distributions will be implemented, disputed ownership funds and reserves will be segregated and our team will commence the process of managing cash receipts and disbursements, resolving claims, tracking transfers of claims and interests, performing accounting and budgeting functions, completing public, private and bankruptcy court reporting, tracking stakeholder capital accounts, completing all required tax compliance and providing tax information and investor relation services to stakeholders in a timely manner.

Periodic reporting to the Bankruptcy Court and to stakeholders will be completed on a mutually agreed timeline.

• Tax Compliance will be completed in a timely manner.
• Activities required are usually at higher level initially after which a more routine operating mode occurs with reduced transaction volume.  However, the same level of financial reporting and tax compliance will be required over the life of every entity. Our team will continue to perform the services throughout the remaining life of the entity until all of the objectives and distributions have been completed.

To learn more about the services we offer and whether they can provide the infrastructure you require please contact Jeffrey Brodsky at 914-253-8100.