Companion files
A Practical Career and Implementation Guide to Special Situations, Restructuring and Recovery
Three Excel workbooks. Chapter 11 sets out what a recovery model must do: drive everything off a small number of visible assumptions, and build the waterfall so that changing enterprise value re-identifies the fulcrum by itself rather than by hand. These files are built to that specification, and they reproduce every recovery the book prints.
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Chapters 5, 6 and 11
A capital structure, an enterprise value, and a waterfall that names the fulcrum by arithmetic. The Chapter 6 manufacturer at $600M — DIP and admin at par, first lien at par, senior unsecured at 60 cents, subordinated at zero — and both flexes that chapter runs: at $750M the unsecured recover par and the break drops into the subordinated notes; at $450M the first lien takes everything and the unsecured go to zero. A ladder across seven enterprise values shows the break migrating in a single view. The Appendix B structure is worked alongside its market prices, including the two flexes to 450 and 780.
DownloadXLSX · 22 KBChapters 4 and 11, Appendix E
The transparent model of Chapter 11: enterprise value of 700, fee leakage of 40, a DIP of 100, and the fulcrum moving out of the unsecured notes and into the second lien as a consequence — which, as the chapter says, is the difference between the security you want to own and a zero. Then what an 80-cent headline is worth when it arrives as 30 cents of cash and 50 of face in takeback notes trading at 90: 75 cents, and a 22% annualised return over two years that falls under 10% if the process runs five. The one-turn-of-multiple sensitivity, where the senior claims do not move at all and the fulcrum swings from zero to 67 cents. And both worked examples of Chapter 4, each ending with the break-even recovery and the cushion.
DownloadXLSX · 23 KBChapters 8 and 14, Appendix A
The mid-market industrial company valued segment by segment — a fair multiple on normalised earnings for the healthy segment, trough earnings and a trough multiple for the weak one — reaching $535M with a range around it. The liquidation floor built independently at $330M. Then both tranches set against both scenarios on one page: the first lien covered on both grounds, the notes recovering 27 cents in the going concern and nothing at all in liquidation. The 27-question diligence checklist of Appendix A is attached as a working document that will not report itself ready while an answered question has nothing written against it.
DownloadXLSX · 20 KB| Blue text | a hardcoded input — you may edit these |
| Black text | a formula — do not overtype these |
| Green text | a link to another sheet |
| Yellow fill | the assumptions that carry the answer |
Chapter 11 is unusually specific about model construction: "build the waterfall so that changing EV automatically re-identifies the fulcrum; the tranche where value breaks should fall out of the arithmetic, not be hard-coded by hand, because the whole point is to watch it migrate as assumptions change."
That is what the status column does. Type one number into one cell and the label moves. At $450M the first lien is the boundary; at $600M the senior unsecured notes are the fulcrum at 60 cents; at $750M the break has dropped to the subordinated notes that a moment earlier were worth nothing.
A position sized on a fulcrum thesis is a position sized on one number. The sheet exists to make you look at how far that number can move before the thesis stops being true.
The workbooks open in Microsoft Excel, LibreOffice Calc, Google Sheets and Numbers. They use no macros and no add-ins, so nothing needs to be enabled or trusted. If your spreadsheet asks to update links on opening, decline — there are none.
The other books with companion files. The full list of titles is on the author page.