As a company director, a restructure can potentially turn around a company that is under-performing and in financial stress and steer it clear of becoming insolvent.
You may also know that restructuring is a complicated, complex and highly regulated process with the responsibility of complying with the Corporations Act 2001 and managing multiple stakeholders, such as creditors and shareholders, and the stress of avoiding personal liability.
With a Caledonian Insolvency Services Partner by your side during a restructure, you have peace of mind knowing you are receiving advice from experienced professionals who have the best interests of you and your company in mind and understand the stresses often experienced during this period of change and uncertainty.
Without professional advice, however, some directors resort to quick-fix solutions to their growing debt, many of which are detrimental their company’s recovery, such as insolvent trading, selling assets at undervalue and breaching employment laws.
Our highly experienced practitioners identify the causes of your company’s under-performance and financial stress and develop effective strategies to address them. They expertly guide you through every stage of a restructure which can include the following:
- Debt advisory including debt restructuring and creditor forbearance negotiation. We explore viable options for reducing your debts including negotiating feasible payment plans with creditors to help avoid a formal Debt Agreement or bankruptcy.
- Financial review and restructuring. We analyse your financial situation, including capital structure and debt to equity ratio, and recommend viable strategies to improve the situation, such as recapitalisation and selling assets.
- Operational review and restructuring with a focus on performance improvement. This typically involves identifying under-performing areas and improvement opportunities, such as cost cutting and increasing efficiency.
- Business re-stabilisation. We advise on adopting and adapting to new financial and operational structures, including rebuilding good relationships with creditors, shareholders, employees.
As every company is different, every restructure is actioned differently and the amount of time a turnaround can take differs too, from a few months to a couple of years. Our strategies always endeavour to enable your company to continue to operate during the restructure with minimal impact and to complete a restructure in as short a time as possible. Following a restructure, our Partners assess your company’s progress and can provide ongoing advice.