Financial Restructuring

Assessing strategic options; analysing stakeholder interests in alternative scenarios; developing restructuring plans; facilitating negotiation.

Your business might be profitable or there may be a reasonable prospect that its fortunes can be turned around - but it could actually or potentially be insolvent. If this is the case, financial restructuring may be desirable, involving matters such as:

• Converting existing debts to equity
• Converting preference shares to ordinary shares
• Debt subordination
• Debt compromise
• The sale of existing debts or equity to more supportive new owners
• Accelerated sale of a business/part of a business – or purchase of another business
• Raising new money

For such a process to be workable, all interested parties must believe that financial restructuring will put them in a better position than if the company were to be put into immediate liquidation. The detailed steps towards achieving successful financial restructuring are:

• Analysis of your business and its prospects
• Reviewing the chances of success for any operational turnaround plan requiring implementation, once financial restructuring is completed
• Review of restructuring options
• Assessing the likely recovery of moneys owed to each class of stakeholder in the event of liquidation
• Development of a restructuring plan
• Development of a negotiation strategy that will ensure each stakeholder group agrees to restructuring
• Identifying new fiscal requirements and raising the required money

We can act as financial advisers throughout this entire process, acting either for you or for stakeholder groups. When acting for you, we will be happy to manage the whole process, whilst also providing you and your colleagues with whatever day-to-day support you may require. We will also continue to maintain an open dialogue with key stakeholders to retain their trust and confidence.

In more complex circumstances or where management resources are already overstretched, we may temporarily appoint a Chief Restructuring Officer who can focus solely on restructuring and turnaround, leaving you and your management team to focus on running the business.