If you have a financial interest in a business that is underperforming, or you simply aren’t being given the right calibre of information on performance, you may find you:
- need to appoint independent financial advisors to review and analyse the situation for you
- want to have a greater understanding of the borrower or investee’s business before you consider your next steps
- need to assess the options for safeguarding your investment, or
- ought to consider whether a restructuring plan is viable.
As a business owner, board member or management, if your business is experiencing distress you:
- need to understand the cause of any underperformance
- require options to help turn the business around, and
- have to communicate, and deal with, the demands of your lenders / stakeholders.
- Conduct rigorous investigations and provide detailed analyses.
- Evaluate current financial and operational status and identify issues – the basis for decision making.
- Review and analyse forecasts and business projections to assess their feasibility, including cash and working capital requirements.
- Recommend a range of options available for short and long term restructuring / turnaround.
- Provide insight on trends affecting the business and how it uses cash and working capital.
- Monitor a business’s cash flow, including reconciliation with restructuring plan requirements.
- Facilitate negotiation and rebuild trust between a business and its financial stakeholders - with the ultimate goal of reaching a mutually agreeable solution for all concerned parties.
- Review for noteholders of the financial condition and performance of one of the largest Chinese solar panel manufacturers, listed in the US with liabilities of more than USD500 million. The main objective was to facilitate a comprehensive rehabilitation and cross-border restructuring of its financial and operational affairs.
- Review for noteholders of the financial condition and performance of a Chinese real estate group with gross asset value over USD2 billion. The optimal exit for the existing noteholders was through the secondary market by way of receivership.
- Review for a creditor bank of the financial condition and performance of a retailer in breach of loan covenants. The business had over 200 outlets across Asia and an annual turnover of over USD150 million. We facilitated the renegotiation of repayment terms and covenants, reset subsequent to the evaluation of the business performance, and advised on the proposed business exit plan.
- Appointed as independent financial advisor to assist a banking syndicate assess and negotiate the debt restructuring proposal of a distressed Vietnamese shipping container terminal with debts of USD100 million.
- Performed a financial and operational review of a distressed manufacturer of garment fasteners listed in Singapore with operations in the PRC. This resulted in a restructuring agreement between the bank group and the company. Undertook cash flow monitoring which helped to restore the bank group’s comfort with respect to the viability of the business. The company maintained financial support and resumed loan repayments.