Case Study

FTI Technology Delivers Transformed Contract Portfolio Following Large Pharmaceutical Company Bankruptcy

In a large bankruptcy matter, FTI Technology’s Contract Solutions experts identified and quantified risk and opportunities across a company’s contract population, to support recovery efforts by a group of lenders acquiring the emerging entity.

Our Role

Working closely with the company's bankruptcy advisors and other involved segments across FTI Consulting, FTI Technology’s Contract Solutions team collected, organized and analyzed nearly 9,000 customer and supplier contract documents, along with historical finance data (e.g., spend and revenue).

The team documented the company’s contract footprint and scope of its operations, identifying gaps in contractual coverage (e.g., expired, expiring or missing contracts), redundancy (e.g., multiple suppliers for the same product), inactive relationships (e.g., no spend data), and risk presented by contract terms.

Consultants from FTI Consulting’s Health Solutions practice leveraged their industry knowledge to review 2,200 contracts that were flagged for further analysis. For example, contracts with committed volume were evaluated for possible favorability, if they covered an active, scarce pharmaceutical ingredient, or adverseness, if the material was facing downward pricing in the market.

Ultimately, the information extracted and analyzed by FTI Consulting’s experts enabled the lender group to make informed decisions about how to action and prioritize each customer and supply agreement.

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