Restructuring

Looking Beyond - A Restructuring Perspective

Events are unfolding with astounding speed, unveiling the outbreak’s repercussions on all sectors with some businesses suffering immediate and major distress. The global spread of the outbreak means that most, if not all, industries will face significant turmoil, and that disruption is inevitable.

Never before in history have the global businesses and sectors faced a crisis resulting from a simultaneous decline of supply and demand. The resulting liquidity crisis is creating pervasive insecurity amongst business leaders and stakeholders.

It is true that the level of impact will vary across various industries and organisations, however, we must remember that with any kind of change, planned or unplanned, growth doesn’t happen overnight. Therefore, keeping sight beyond this crisis is vital for businesses to not only survive but to emerge stronger and with a renewed vision.

The right responses are dependent on the specific circumstances you and your business face. However, when experiencing significant stress or distress, we recommend you center the majority of your actions on the management of your financial position and liquidity.

We have developed a set of guidelines that all businesses can follow: The Resilience Wheel is designed to outline those critical areas in a business that need to be studied and addressed at times of crisis.

We then continue to outline the possible options for businesses to choose from based on the level of impact the current crisis has enforced on them. We start by laying down detailed and valuable measures, that if taken correctly, in the right order and at the right time, will result in safeguarding liquidity, debt position and operations. 

For those businesses in distress, we can help with assessing their position and developing a practical insolvency plan. We work with their advisors and stakeholders to identify the right path to maximize the available value.