Reorganization

Advising Companies on their refinancing processes

Advising Companies on their refinancing processes


Debt refinancing processes are complex processes that require qualified professionals with accredited knowledge and experience. Financial, strategic and operational aspects of the business have to be evaluated, without forgetting the legal and tax issues and implications that must be taken into account in these types of processes.

We have an expert team in refinancing processes that has the technical and industry-specific skillsets necessary to successfully deal with these types of situations , which allows us to provide the most appropriate solutions, taking into account the circumstances and particularities of our customers, and the sectors in which they operate.

Our approach is to consult shareholders and the senior management on the strategy to be followed in their debt restructuring process, helping them to realistically, independently and objectively identify the aspects that will allow them to face and overcome liquidity difficulties, and implementing the solution, leading the negotiations of the entire process with the creditors and financing entities.

How can we help you?
  • • We facilitate a better understanding of the financial and commercial situation of the company, its future viability and the refinancing alternatives available, understanding the typology of existing creditor entities.
  • • We advise on the implications that refinancing might have on the financial statements (deterioration of the income statement) and develop an analysis of potential business scenarios
  • • We present refinancing alternatives to the creditor bank by means of a diagnostic of company debt and the cash generating forecasts of the short and medium term
  • • We present as much legal advice on the modification y reformation of financing contracts as on the valuation of other aspects of responsibility that could arise from a potential bankruptcy

Operational Restructuring


When organizations perform well below expected or must adapt their structure to the new crisis environment, the solution is likely to be operational restructuring

Our Business Restructuring team has the technical and sectoral knowledge and experience necessary to successfully address these types of situations, allowing us to provide the most appropriate solution considering the circumstances and particularities of our customers and the sectors in which they opérate.

We work closely with Management and have multidisciplinary teams with proven experience in advice and management to develop plans that are realistic and pragmatic, as well as support the execution of their implementation.

Potential problems:
  • Market drop with inflexible cost structure
  • Pressure on Circulating Capital.
  • Unexpected decline in profitability.
  • Unsustainable operating expenses.
  • Covenants incompliance.
  • Increasing level of demand in terms of information requirements, often by financial institutions, on the company’s recovery plans.
  • Need to develop, finance and implement a turnaround plan to maintain the support of stakeholders and the viability of the company. Manage a plan for change or improvement while facing the day-to-day tasks of the business.
  • Need to develop a divestiture and deleveraging plan.
How can we help you?
     

  • Conduct a review of short-term cash flows.
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  • Identify improvements in working capital and cost structure.
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  • Contribute our knowledge and experience in the company’s sectors of activity to support the management team in the development of initiatives.
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  • Access to interim managers with relevant experience in similar situations.
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  • Development of sustainable restructuring and operational improvement plans.
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  • Assist in negotiations with external stakeholders.
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  • Develop a project management office to coordinate the entire process and work of the professionals involved and facilitate the development of turnaround or restructuring plans.

Optimization of Working Capital and short-term financing

Potential problems:
     

  • Increased working capital financing requirements as a result of business growth.
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  • Lack of visibility on the cash flow and the behavior of working capital in the organization as a whole, as well as the complete working capital cycle.
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  • Lack of commitment and awareness by the members of the organization about the importance of optimizing working capital. Absence of incentives that promote said commitment.
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  • High levels of both past due and unpaid debt by suppliers.
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  • Ineffectiveness of controls established for the establishment of the conditions of collection and payment with clients and suppliers respectively.
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  • Inefficient process of “Sales Operations and Planning” (S&OP)
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  • Poor levels of customer service: On Time in Full (OTIF)
How can we help you?
  • Making benchmarks with the goal of comparing a business´situation with respect to its natural competitors and indentifying potential opportunities for improvement.
  • Making a diagnostic that identifies levers of improvement that have a rapid effect on earnings as well as levers of improvement in the generation of earnings by circulating capital in the long term.
  • The development of specific action plans for the implementation of measured approaches to increase the capacity of fund generation
  • Help in the implementation of an optimization model of circulating capital, efficient and collaborative in the process terms by the following key value levers:
  • Optimizing working capital cycles throguhout the entire process.
  • Following up and monitoring
  • Indentification and improvement of terms within which trade agreements are based.
  • Creation and incorporation of a ¨Culture of earning¨ throughout the entire organization, so that the balance between earnings, cost and service is constantly evaluated.