Many restructuring efforts fail, contrary to general belief not due to the economic conditions, but because of the clumsiness of the consultant. The frequently expressed complaints about irrational behavior of the lender (banks, etc) in a crisis situation is very often based on a lack of understanding, what is feasible for a credit provider and what is not. In many cases, the decisive factor is not the extent of the necessary economic contribution but rather the set-up and arrangement.
Again and again, we are faced with situations, in which restructuring plans are submitted that are either not at all or only in an inadequate manner discussed and communicated to the creditor. Already for very practical reasons (with regard to timing of internal procedures necessary for a decision), such plans are doomed to fail. For a successful agreement on the restructuring plan, transparency and ongoing communication with the participants is more important than the actual economic contribution required.
You can profit from the experience of our team leader in this area, who has worked, partly also in-house, as person in charge in such situations. As is often the case in sales, not only the content of the reorganization plan is important but also the way it is conveyed to the creditors. The only thing scarcer in a crisis than cash is trust.
We are happy to assist you in the planning and communication with creditors, either by taking over the entire process or only selective areas. Please contact us for more information.