Interactive Model · Corporate Finance & Restructuring

Financial Restructuring
Dashboard

An interactive modeling environment for distressed enterprise scenarios — demonstrating debt restructuring mechanics, strategic asset divestitures, and DIP financing covenant compliance across a simulated $1.2B industrial conglomerate.

$1.2B

Annual Revenue
Meridian Industrial Holdings

$780M

Total Outstanding
Debt Obligations

$144M

EBITDA (12% Margin)
Pre-Restructuring

Debt-to-Equity Swap & Refinancing Workout

Meridian Industrial Holdings carries $210M in senior unsecured notes with a balloon payment due in 18 months. The company cannot service this obligation. Model a negotiated conversion of unsecured debt into equity — reducing annual debt service while diluting existing shareholders. Adjust the refinancing rate on remaining obligations to explore workout scenarios.

Debt Converted to Equity 50%

Refinancing Rate 8.0%

$51.6M

New Annual Debt Service

$26.4M

Annual Debt Service Reduction

8.75M

New Shares Issued to Creditors

14.9%

Original Shareholder Dilution

Annual Debt Service Comparison (5-Year)

Pro-Forma Equity Ownership

Strategic Asset Divestiture & Core-Business Reinvestment

Meridian operates three distinct divisions plus a corporate real estate portfolio. To generate liquidity and de-lever the balance sheet, select which non-core assets to divest. Net proceeds are split between debt paydown and reinvestment into the highest-margin core operations to drive long-term enterprise value creation.

Precision Components (Division A) Revenue: $380M · EBITDA: $57M · EV Multiple: 7.5x

Specialty Chemicals (Division B) Revenue: $290M · EBITDA: $37.7M · EV Multiple: 6.0x

Infrastructure Services (Division C) Revenue: $530M · EBITDA: $49.4M · EV Multiple: 5.5x

Corporate Real Estate Portfolio Book Value: $85M · Fair Market Value: $120M · Leaseback: $9.6M/yr

Transaction Cost Rate 5.0%

Reinvestment Allocation 70%

Gross Divestiture Proceeds

Net Proceeds After Costs

12.0%

Pro-Forma EBITDA Margin

5.42x

Pro-Forma Leverage (Debt / EBITDA)

Revenue Composition: Before vs. After

5-Year EBITDA Margin Projection

DIP Financing & Covenant Compliance

Meridian has filed Chapter 11. A $150M Debtor-in-Possession facility has been secured at 12% with a strict 1.2x minimum liquidity covenant tested monthly. You must adjust operational levers to keep the company within covenant compliance while restructuring operations. If monthly cash falls below $30M, the DIP lender may accelerate the facility.

DIP Facility

$150M

Interest Rate

12.0%

Minimum Liquidity Covenant

$30M

Headcount Reduction 15%

Vendor Renegotiation Savings 10%

Halt R&D Spending ($28M/yr) Eliminates $2.33M monthly burn · Impacts long-term competitiveness

$10.4M

Adjusted Monthly Burn Rate

Months of Liquidity Runway

$1.6M

Total Monthly Savings

Compliant

Covenant Status

12-Month Liquidity Runway vs. Covenant Threshold

Lender Notice

Notice of Potential Covenant Default

Pursuant to Section 7.02(a) of the DIP Credit Agreement dated as of the Petition Date, the Administrative Agent hereby provides notice that the Borrower's Minimum Liquidity, as tested on the applicable Measurement Date, has fallen below the required threshold of $30,000,000. The reported cash position of $XX,XXX,XXX in Month X constitutes an Event of Default under Section 8.01(d). The Required Lenders reserve all rights and remedies under the Credit Agreement, including acceleration of the DIP Obligations. Borrower has five (5) Business Days to cure.