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Service: Asset Valuation/M&A Advisory

Client: In-House Capital Subsidiary of a Global Generation Portfolio Owner

Client Objective: Lenders needed to demonstrate that their debt to a troubled portfolio of generating assets not in Chapter 11 was impaired, and thus increase their leverage to negotiate a favorable restructuring with a parent that was in Chapter 11.

E3 Services: E3 Consulting was retained by the lenders to value the assets and develop a business plan to demonstrate the economic viability of the assets operating on a stand-alone basis.

Services provided by E3 Consulting included:

  • Managing the modeling of commodity price forecasts including, natural gas, coal, electrical energy and capacity
  • Evaluating the condition of the generating assets
  • Developing a valuation proforma for the lender's use in modeling scenarios of ownership structures and capital structures
  • Developing and costing the theoretical infrastructure to support stand-alone operations
  • Quantifying the economic viability of the portfolio as a stand-alone entity

Client Result: The client used E3 Consulting's work to successfully restructure the debt at more favorable terms than would otherwise have been available.