Wall Street Prep
Restructuring Modeling
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Restructuring Modeling

33 Lessons
5h 55m
64,333 Students

Designed for restructuring-focused investment bankers, consultants and distress debt investors. Trainees will learn the restructuring framework and build a three-statement bankruptcy model the way it's done on the job.

Course Objective

At completion, trainees will have developed a 3-statement bankruptcy model from scratch and performed valuation and recovery analyses.

Using the Borders bankruptcy as our primary case study, we begin with an overview of the restructuring and bankruptcy framework. Then we will learn to build an advanced bankruptcy model from scratch, incorporating bankruptcy specific elements like DIP financing, the creation of liabilities subject to compromise, working capital drivers, cancellation of debt income, and Fresh Start accounting. We conclude the course with valuation analysis and a recovery analysis, where we will layer various valuation scenarios onto the model to analyze possible recoveries to the various creditors.

What You Will Learn

Model some of the most challenging aspects of a bankruptcy, including:

  • Working capital reclassifications such as critical vendors/AP
  • DIP financing, borrowing base and availability calculations, adequate protection payments
  • Balance sheet roll-forward schedules that maintain a consistent link structure to the cash flow statement and increase transparency
  • Fees, rejection claims and CODI
  • Model recoveries at various operating scenarios
  • Construction of a recovery waterfall that can accommodate scenarios that deviate from the absolute priority rule
  • Using conditional formatting and Excel’s native date formulas to sensitize for different filing and emergence date scenarios
  • Avoiding circular references in the model while maintaining model integrity
  • Incorporating best practices for error-proofing, auditing, and model efficiency
  • Understanding how Fresh Start Accounting affects the model
  • Working capital reclassifications, such as critical vendors/AP

Wall Street Prep’s Restructuring Modeling course is used at top financial institutions and business schools.

Course Samples

Inputting Historicals
Modeling the DIP Revolver
Excel Logo
Bankruptcy Model Sample (No Formulas)

Course Highlights

  • Step-By-Step Modeling Instruction

    The Restructuring Modeling Course delivers step-by-step lessons through videos, readings, ready-to-use restructuring financial and valuation models and exercises using a real case study.

  • Real World “On the Job” Investment Banking Training

    The Restructuring Modeling self-study course bridges the gap between academics and the real world to equip trainees with the practical financial skill set needed to succeed on the job. The program utilizes a case study format, as students follow their tutorial guide alongside Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build real Restructuring models the way it’s done on the job.

  • Support Center

    Upon enrollment, students gain 24 month free and unlimited access to Wall Street Prep’s Online Support Center, where they receive answers to questions, free downloads, and important updates from a support staff comprised entirely of experienced former investment bankers

  • Macabacus Excel Plugin

    Free access to Macabacus, all-in-one suite of time-saving tools designed for people who build financial models in Excel. Use keyboard shortcuts for common number formats, to cycle rapidly through different font and color schemes and to navigate a formula’s inputs across worksheets and workbooks. Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool, and much more. This 6-month free access is for the full version of Macabacus that also includes essential tools for Powerpoint and Word!


This course does not assume a prior background in Restructuring Modeling. However, it assumes an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.

Course Agenda

    • Bankruptcy overview
    • Imputing asset values and measuring insolvency from market pricing of debt and equity
    • The importance and limitation of valuation methodologies like DCF and Comps in restructuring
    • Out of court restructuring process
    • In court restructuring process
    • Automatic Stay and Adequate Protection
    • Cash Collateral and DIP Financing
    • Restructuring Leases & Executory Contracts
    • Fraudulent Conveyance & Preference Actions
    • Plan of Reorg & Disclosure Statement and Cram Down Provisions
    • The Absolute Priority Rule
    • Building a fully integrated three statement bankruptcy model
    • Master modeling mechanics that dynamically distinguish between prepetition, postpetition and post-emergence phases of a restructuring
    • Make restructuring specific working capital and operational adjustments to traditional modeling assumptions
    • Build a sophisticated multi tranche debt schedule, including the possibility of a DIP rollup
    • Deriving valuation ranges using multiples
    • Analyzing proposed plan distribution
    • Performing recovery sensitivity by investor class (“waterfall” analysis)

Course Syllabus

Chapter 1: Restructuring Primer
1 Restructuring Overview, Part 1 30:44
2 Restructuring Overview, Part 2 38:11
3 Restructuring Overview, Part 3 22:04
4 Restructuring Overview, Part 4 12:05
Chapter 2: Restructuring Modeling Program
5 Introduction 2:14
6 Model Structure 8:54
7 Model Structure, Part 2 9:22
8 Inputting Historicals 15:11
9 Forecasting the Income Statement 10:47
10 Forecasting Working Capital 12:53
11 Forecasting Property, Plant, and Equipment (PP&E) 10:55
12 Forecasting Goodwill and Financing Fees 10:50
13 Forecasting Accounts Payable 5:25
14 Forecasting Accounts Payable, Part 2 4:31
15 Forecasting Accounts Payable, Part 3 4:34
16 Accrued Liabilities and Other Long Term Liabilities 6:36
17 Lease Rejection Claims and Professionals Fees 5:22
18 Cleaning up the Balance Sheet and Income Statement 6:28
19 Debt Introduction and Modeling Prepetition Term Loans 8:38
20 Modeling the Cash Flow Statement 12:41
21 Modeling the Prepetition Revolver, Part 1 14:27
22 Modeling the Prepetition Revolver, Part 2 4:21
23 Modeling the DIP Revolver 9:17
24 Referencing Debt Related Forecasts into the CFS 3:10
25 Valuation and Debt Capacity 5:53
26 Sources and Uses of Funds 8:23
27 Modeling the Priority of Claims Waterfall 25:27
28 Exit Revolver 11:05
29 Debt Reinstatement 4:09
30 Modeling the Equity 7:13
31 Completing the Model 12:13
32 Additional Topics: Fresh Start Accounting
33 Additional Topics: The Thirteen Week Cash Flow 10:18
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