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After emerging from bankruptcy and adopting fresh-start accounting, the company faced the daunting task of revaluing its entire balance sheet to fair value while remaining an active SEC registrant. This required accurate preparation of opening balance sheet entries, comprehensive technical analyses and robust SEC reporting. Compounding the challenge was the need to address complex accounting matters, including derivative reviews, impairment testing, and asset retirement obligations—all while maintaining day-to-day operational leadership.
SolomonEdwards deployed senior-level professionals with deep expertise in fresh-start accounting, purchase accounting, and technical GAAP advisory. Our team crafted the company’s fresh-start-based balance sheet, developed and defended emergence-related MD&A disclosures for the 10-K, and provided technical guidance across critical issues. Over time, our role expanded to include ongoing SEC advisory services, drafting technical positions, supporting annual impairment and derivative reviews, documenting revenue recognition, and assisting with segment reporting. We also placed an interim controller within the corporate IT function to provide additional leadership and stability.
With our support, the company achieved a successful transition out of bankruptcy with a fair-value-based balance sheet that met SEC requirements. Technical issues related to fresh-start accounting were fully addressed, and disclosures were developed and defended through the SEC Comment Letter process. Our continued involvement evolved into an ongoing advisory role, ensuring accurate reporting, timely compliance and reliable financial governance. The client gained confidence not only in their immediate financial reporting but also in their ability to sustain transparency and compliance in the years that followed.