Introduction and Case Study (2022 Complex Financial Restructuring Program)
Hexative, a large global chemical company, is experiencing distress as it tries to deal with a heavy debt load after years of decline in its market share in the competitive adhesives market. As was the case in the 2014 bankruptcy of Momentive Performance Materials, Hexative needs to deal with complicated issues, including a shared management team and governance structure with another portfolio company owned by the same corporate parent, a large make-whole payment due in the event of a bankruptcy, and valuation issues surrounding the business. Hexative and its advisors need to figure out these issues quickly, as it is facing a near-term liquidity crunch that will leave it unable to make its next interest payment when it comes due. Through this case study, the panelists provide insights, practical advice and proposed solutions for the strategic decisions and negotiations that are part of the day-to-day reality of restructurings and successful turnarounds.