Proof, not promises, the way to secure restructuring support
Funders expect management to show that difficult decisions are being taken, including the discipline to exit loss-making contracts.
Restructuring, by its very nature, can seem a daunting process. Finance is often needed to fund it but accessing that capital can be challenging. However, there are some steps that businesses can take to make the task more manageable.
“Speed and clarity are critical in any restructuring,” says Ken Tyrrell, business restructuring partner at PwC corporate finance. “Act while the business is stressed, not distressed, and communicate a tight cash picture before lenders or funders lose patience. Then layer solutions to the problem such as a liquidity bridge, balancesheet repair, or both.
