Business restructuring

The impact of the financial crisis and the global economic downturn is now being felt in Russia as the combined effect of reduced liquidity and falling demand for commodities goes on to affect other industries.

In the current market environment it is very difficult to refinance debt or raise new funds, and many borrowers will be unable to meet their debt obligations. Early detection and swift, decisive action are essential to restoring performance and value. That’s why timely, professional advice is critical.

If this is your situation

• Your company is facing liquidity issues
• You find it difficult to refinance debt or raise new funds
• Your business is underperforming and you have or may be about to breach loan covenants
• You need assistance in dealing with the demands of lenders
• You need to negotiate a debt restructuring agreement

How we can help

PricewaterhouseCoopers’ business restructuring specialists assist companies and their lenders or creditors by providing practical and commercially driven solutions.

Independent business reviews

PricewaterhouseCoopers can assist stakeholders in troubled companies in finding a solution by performing a tailored, objective assessment of the company’s situation and options for turnaround or recovery of their exposure. Our rapid and rigorous review analyses current and prospective financial performance, operating dynamics, asset deployment and management issues. We then identify a range of options based on our findings.

We frequently perform such reviews for banks, bondholders and other financial stakeholders in CIS and around the world. The result is an independent and in-depth assessment of the company’s situation and solutions aimed at preserving and enhancing value for all stakeholders.

Debt restructuring

When a company experiences cash flow difficulties, relationships with lenders and suppliers often become strained. We assist companies in dealing with the demands of their lenders by assisting in the preparation and presentation of information and coordinating or negotiating a debt restructuring agreement. This allows management to focus on running the business and making operational improvements.

Lenders and other stakeholders need to understand the position of their business and be persuaded that its prospects are sufficiently attractive for continuing their support. Working with independent external financial advisors is often essential for the debt restructuring process to succeed - particularly where multiple lenders are involved.

We can assist companies with debt restructuring. Our ultimate objective is reaching a practical solution for all concerned parties.

Accelerated M&A

For companies under pressure from issues of profitability or cash flow, selling the business or assets may prove to be the most feasible option for raising funds to repay debt. Selling the business or assets voluntarily will typically result in a higher level of realisation than a sale under duress.

PricewaterhouseCoopers can act as a lead advisor to prepare a business for sale, then advise and run the sales process on behalf of the company. To facilitate a successful sale, clear guidelines should be established for the timeframe and outcome of the sale process.

Operational restructuring

Any restructuring or turnaround usually involves operational restructuring. We can assist in developing a plan to make improvements to the company from an operational point of view and, consequently, free up additional cash to support the business and service debt. Such measures may include working capital management, overhead reduction, cost cutting and improving efficiency.

We thoroughly assess all turnaround options. We work with management, creditors and other stakeholders to develop an action plan and organise the resources required for effectively implementing this plan. Our restructuring professionals make use of PricewaterhouseCoopers’ extensive industry knowledge and apply local knowledge in planning complex restructurings.

Working capital management

Even with a generally healthy operating cash flow, cash gaps – when there are insufficient funds on the settlement account for current payment – are frequent and can lead to expensive borrowings. That’s why efficient businesses are always looking for ways to increase the funds generated to cover production requirements and to make new investments.

PricewaterhouseCoopers business restructuring group helps companies to improve financial efficiency by optimizing the ways they manage their working capital.
We identify company’s working capital needs and provide advice on the best working capital structure for your company, taking into account your business objectives and the sources of financing available.