TURNAROUND AND RESTRUCTURING ADVISORY SERVICES

TPH provides Business Turnaround assistance to SME’s and advises them where there is no necessity for a formal insolvency restructuring appointment. This involves working through and overcoming cash flow and low profit problems. Our depth of experience in dealing with insolvency assignments enables us to identify exactly what turnaround approach is best suited.

Most assignments commence with a carefully planned solvency review which provides a snapshot of the financial structure and likely outcomes for the business if it continues down the path it is on. The process identifies the current and future liquidity profile along with major risks and impediments to trading solvently and profitably. If the solvency review identifies significant detrimental cash flow problems we then work through, with management, the options available to arrest and ‘turnaround’ the liquidity situation.

For more information and a free initial consultation, call 1300 756 425 or email enquiry@tphinsolvency.com.au

COMPANY RESTRUCTURING

Turning the ‘solvency’ position of a business around is a challenging task. There are many obstacles, both legal and practical, that need to be addressed, and these include:

  • Defaulting loan agreements;
  • Overdue taxes;
  • Supplier’s terms and conditions not being met; and
  • Employee entitlements not being funded.

TPH will explain all the elements of turning a business around and also provide you with alternate programs depending on the legal obligations, priorities and risk appetite.

Our clear and transparent terms of engagement consider:

  • Phoenix transactions such as  fair value asset sales and transfers;
  • Lender/supplier debt standstill and compromise arrangements;
  • Insolvent trading risks for directors and holding companies; and
  • Sourcing and introducing alternative forms of finance.

FORMAL Vs INFORMAL TURNAROUND APPROACHES

Once a solvency analysis is undertaken, TPH will recommend a turnaround strategy involving either a formal, informal or mixture of the two restructuring approaches. Management can then decide which approach to adopt working closely with TPH.

FORMAL RESTRUCTURING

On many occasions an ‘Informal’ approach will not achieve the objectives due to a critical factor that can’t be informally altered e.g. primary suppliers won’t renegotiate terms, too many creditors to deal with, and too many operational matters to balance.

Once a formal restructure is recommended by TPH then we then work with the company to implement formal appointments, generally Voluntary Administrations and Deeds of Company Arrangements.

INFORMAL TURNAROUND

An informal turnaround approach will adopt a variety of strategies and tactics to bring together a workable solution, including:

  • Refinancing  and renegotiation with financial institutions;
  • Creditors terms being renegotiated;
  • Employees terms of employment explored and restructured where necessary;
  • Infrastructure needs analysed;
  • Sale and/or transfer of business structure; and
  • Creation of new trading entities.

Each assignment has different components, therefore, TPH works closely with management, pulling the business through this typically tricky period.