Prior to or during a restructuring, it is common for a company to encounter acute financial distress and a shortage of liquidity. During this time, it is imperative that the company is able to forecast and manage its short term liquidity, adhere to any additional reporting requirements imposed by lender groups, maintain business continuity with customers and suppliers and retain the goodwill of its employees. Above all, the company must retain sufficient cash to be able to trade through the restructuring process.
We work alongside management to:
- Develop robust short term cash flow forecasts and reporting formats in order to manage scarce liquidity and avoid damaging the restructuring process due to cash constraints
- Identify and implement working capital and other cash flow improvements to create more headroom and give time to implement a solution
- Support management in dealing with time critical issues