TURNAROUND

kavanaghfennell can draw on the significant experience of our professional team to provide a specialist service covering:

• Turnaround
• Schemes of Arrangement

We can also avail of the vast experience of Ireland’s leading law firms and tax specialists with whom we have completed a wide range of assignments.

Turnaround

Companies experiencing credit management and revenue management difficulties must act upon the early warning signs.

Very often the company itself can solve the problems or the company may seek assistance from its auditor or other financial advisor.

The auditors or financial advisors may not always be in the position to devote the time or have the hands-on management skills to assist the company with the specific difficulties being experienced. In these circumstances the directors should seek the advice of a turnaround expert.

The benefits of engaging a turnaround expert are still not known by a significant number of directors of failing companies, who, as a result, will often not look for advice of any kind until it is too late to save the company.

If the company ignores the early warning signs and does not take a pro-active approach to managing the difficulties, the banks will take action and call in the expertise of a turnaround specialist.

Scheme of Arrangement

When a company is experiencing difficulty in meeting its liabilities the directors should turn to the experts for guidance.

If not managed correctly during times of temporary difficulties, the company can lose control of the situation and find itself in hostile and potentially costly legal battles with its creditors. The directors must remain focused.

It is our skill and experience in these situations that uniquely qualifies us to assist clients during these difficult times.

What is a Scheme of Arrangement?

• The company puts a proposal to its creditors to accept a percentage of their total debt at a point in time.
• There are conditions usually attached to the Scheme, such as an agreement to pay debts going forward within the credit terms, for example 30 or 60 days.
• There is usually new investment lined up to coincide with the arrangement with the creditors, and a re-organisation plan for the business.

A Scheme of Arrangement can be informal.

Informal Scheme of Arrangement

Informal schemes are organised between the company and its creditors without having to go to court.

This informal approach many not suit every company and under certain circumstances it is sometimes better for the particular company to reach agreement with its creditors under the protection of the Court.

The company will approach its creditors and inform them that the company is currently having difficulties paying its debts.

The company must be very careful how it communicates with its creditors during this time and ensure that creditors are fully informed of the exact financial status of the company, what the directors expect the future to hold, available investment and the re-organisation plan.

This is a very delicate time for a company and with the experience of our team you will be guided through the options available to you.

How kavanaghfennell can help?

If you wish to discuss turnaround or corporate restructuring generally, please contact Tom Kavanagh, Ken Fennell or David Van Dessel.

tkavanagh@kavanghfennell.ie, kfennell@kavanaghfennell.ie, dvandessel@kavanaghfennell.ie