Distress can be caused by failing to secure financing which can be maintained in the long-term.
Excessive indebtedness can be a result of using unrealistic financial projections or delaying optimization of working capital and superfluous assets.
Companies which, for whatever reason, lose their profitability are often in the difficult situation of not being able to implement new projects and even slide into insolvency. Latest at that point, Investors goals will look very different than borrowers.
Financial constraints or evident insolvency risk require quick action. Liquidity and financing must be secured and managed, profitability improved and value conserved.
Among first measures, we put in place a Turnaround Dashboard collecting most relevant information to separate value creation from destruction. Then a restructuring plan prioritizes first measures to optimize solvency with the help of a liquidity contingency plan until securing longer term financing.