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Fresh-Start Reporting & Technical Accounting Memos

Fresh-Start Reporting & Technical Accounting Memos

We guided a leading telecommunications provider through the complex challenges of bankruptcy, aligning court requirements with financial reporting and operational controls. Our team scaled resources to manage claims processing, reconcile interdependent workstreams, and prepare the organization for emergence. Our proactive, flexible approach enabled accurate processing of over 40 bankruptcy iterations, far exceeding the industry norm, and positioned the client for long-term stability.

Challenge

We helped a public telecom provider navigate their way through bankruptcy courts and the complex web of interdependent workstreams commonly involved in bankruptcy.  An unfavorable litigation ruling related to a sale leaseback transaction forced the company into Chapter 11 bankruptcy. The company lacked sufficient bandwidth and expertise to support the sudden increased demands on their accounting team. They needed a trusted partner to support the accounting and reporting needs, ensure regulatory compliance, and anticipate and manage the various workstreams required to support a successful bankruptcy emergence as a private company.

Solution

SolomonEdwards partnered with the client’s leadership team and advisors to provide targeted support across critical workstreams:

  • Accounts Payable Support – Stood up team and provided critical vendor and claims reconciliations to support the claims resolution process.
  • Bankruptcy Claims & Reporting – Established claims estimation processes, supported Liabilities Subject to Compromise (LSTC) analyses, and executed bankruptcy-related reporting under ASC 852.
  • Fresh-Start Planning – Assessed fresh-start applicability, advised on emergence reporting, and coordinated with legal, tax and financial advisors to ensure readiness.
  • 4-Column Model – Customized a 4-column model and populated with the JEs and audit-ready support.
  • SOX Controls – Designed bankruptcy emergence controls, including ownership and implementation plan.
  • Technical Accounting Memos – Led the evaluation and documentation for ASC 852 technical accounting memos.
  • Footnote Disclosures – Supported the financial reporting team with ASC 852 disclosures.
  • Systems Cutover– Assisted with planning for the ERP systems cutover at emergence and related push-down accounting into subledgers and GLs.
  • Claims Payment Management – Our team facilitated the creation of the detailed payout files for each tranche of claims payments by agent.

Outcome

Our client accurately reported the 40-plus iterations of the Plan of Reorganization, as opposed to the average of 3-4.  Our flexible model, built on the comprehensive understanding of the complexities of bankruptcy, provided valuable accounting and reporting expertise as the process progressed.

Industry

  • Telecom
  • Industry 2
  • Industry 3
  • Industry 4
  • Industry 5
  • Industry 6
  • Industry 7

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