Our Services and Approach
Covendium provides comprehensive capital structure and asset analytics, business consulting and financial advisory services to distressed business entities, family offices and high net-worth individuals.
The Covendium team works with each Client and their professional advisors to develop a customized financial survival plan with the goal of aligning the liability side of their personal and business balance sheets with their current overall cash flow.
To date, Covendium has advised multiple Clients responsible for debt and other financial instruments with an aggregate original principal balance in excess of $1.8 billion. The Covendium team has been engaged in successful negotiations with over 25 banking institutions (including major national, regional and community banks) and over 30 separate non-bank financial counterparties.
Covendium Clients and their advisors enjoy the dedicated and focused day-to-day leadership of a team of professionals and entrepreneurs with financial, real estate, residential and commercial mortgage, accounting, legal, securities, and transaction structuring experience.
A Coordinated Effort Creates the Highest Probability of Success
Covendium works directly with each Client’s legal, tax, accounting and financial advisors during all phases of our service relationship. In the event that a Client’s advisory team needs support, Covendium has an extensive network of relationships with well recognized bankruptcy attorneys, tax attorneys, real estate attorneys, accountants and certified financial planners in each community in which it operates. Our in-house knowledge base and experience, combined with the resources available to us from the Client’s advisory team and our advisory network, allows us wrap each Client with the exact level of professional service required to ensure the highest possible probability of success during the implementation phase of our process.
Helping Distressed Clients Embrace the Reality of Their Situation – Catering to The Human Factor
In our experience, Client’s who engage Covendium as soon as they recognize the “red-flag” signals that they are entering a financial distress cycle have a significantly higher likelihood of overall success in the implementation of their master restructuring plan. The five major red-flag signals are:
- Inability to keep current on major financial obligations
- Contact from major creditors to meet to discuss your personal and business financial condition
- Dipping into personal resources or business reserve accounts to satisfy major financial obligations
- Liquidating assets at fire-sale prices to raise cash to keep business operations going or satisfy major financial obligations
- Diverting profits from viable and profitable business operations to support weaker operations on a regular and continuing basis
We understand that each Covendium Client is a human being and that most have a family that looks to them for financial and emotional support and that many have employees and/or financial benefactors that look to them for income and/or asset preservation. We take our responsibility to each Client, his or her family and his or her employees and financial benefactors very seriously and we strive to treat each Client with respect, empathy, and a continuing awareness of their financial, community and social concerns and goals. Above all, we understand that our Client’s deserve our highest level of diligence and service.
Financial distress surely puts a strain on the personal and business pocket book but it also takes a serious toll on family relationships. Having been through the Covendium Process with many Clients, each from a diverse walk of life and each with a unique set of circumstances, we are ready to answer the common questions that arise, allay the recurring concerns and fears that tend to cloud judgment and arrange third party professional support resources to be available whenever necessary to help a Client achieve personal comfort and well being during their time as a Covendium Client.
Even in these turbulent times, some of our past and current Clients have been concerned about the perceived stigma associated with engaging Covendium and a bankruptcy advisor to develop, negotiate and implement a debt resolution plan. We value Client confidentiality and privacy and make every effort to control information dissemination to a minimum. In cases where fear of that stigma creates a barrier to a Client from reaching out for certain resources, financial or otherwise, Covendium is more than happy to facilitate a discrete means by which to get needed services to Covendium Clients.
Covendium becomes a partner to each Client and is ready, willing and able to provide comprehensive professional and human support services as we together implement a plan for financial survival and future financial security.
Helping Prospective Clients, their Advisors and Even their Creditors Move from Paralysis to Action
It is important that prospective Clients and/or their advisors reach out to Covendium for a no-cost initial consultation as early in the distress cycle as possible. The time for a prospective client to educate themselves and act is long before he or she has started to needlessly utilize their bankruptcy-exempt assets to support their failing business endeavors.
Based upon the successes we have achieved for Clients to date, three universal truth’s have emerged:
- Where Covendium and able bankruptcy counsel are retained at the first signs of financial distress, we collectively have the greatest likelihood of creating and implementing a successful global Client restructuring solution;
- For Client’s in severe distress with the need to negotiate several liability solutions to achieve overall financial survival, Covendium has achieved a higher degree of overall plan success where it is engaged to resolve all or a significant majority of a Client’s troubled liabilities. When a group of financial institutions know that there are other creditors that will need to make concessions with regard to a finite cash-flow stream from a single Covendium Client, it is often easier to move each into desired position than if Covendium is engaged on single liabilities; and
- Under certain circumstances, and with appropriate premium fee arrangements in place, Covendium may be willing to take-over the negotiations on one or more liabilities where a Client, their advisors, and/or other service providers other have started the resolution process but failed to achieve the Client’s desired result. In these cases, we warn each Client that while we use every commercially available resource to fix and remedy such a situation, it is often difficult or impossible for Covendium to reverse or mitigate certain ill-advised or poorly negotiated restructuring plans done without proper planning and coordination..
In certain cases, in the wake of successful negotiations, an increasing number of banks, non-bank financial institutions and major creditors have directed their distressed debtors to Covendium so that they can consider becoming Covendium Clients. We feel that those creditors recognize the integrity of our analytical approach and the veracity of our work-product to such a degree that they choose to suggest that Covendium help move some of their silent-suffering debtors into meaningful dialogue.
If you are an official of or an advisor to bank, a non-bank financial institution or a major creditor group and you would like to discuss recommending a single prospective client or a group of prospective clients to become Covendium Clients, we would be happy to talk with you.