Financial Restructuring

When companies experience problems, cash balances decline, bank's lines of credit dry up and creditor pressure increases. Our first priority is to assess and stabilize the situation at hand. This involves an immediate review of its operations and a short term plan to provide enough working capital to enable the business to continue in operation. Once this has been established, it is necessary to identify root problems and develop a recovery plan. This plan needs to be communicated and agreed by all the company's stake-holders, owners, lenders, creditors and employees to ensure they understand the situation and obtain their buy-in to the recovery plan. The plan can include a re-organization of the balance sheet, streamlining of activities, divestments of non-core activities and strategy for future growth.