Christine Convy, Director of Dunedin Advisory writes:
Instead of adopting a wait and see approach to the complexities and uncertainties of Brexit, now is the time for companies to get ahead of the game – especially those reluctant to admit to underlying problems. Thinking or hoping their business will trade out of the issues it is facing with benign economic conditions and a low interest rate environment has exacerbated the situation. Decisive reorganisation and restructuring action may be key to survival.
Unprecedented challenges confronting many companies do not necessarily represent personal or management failings. Even companies with a sound underlying business and strong market demand may face extreme supply and demand issues and look to minimize loss to shareholders and creditors. Restructuring with turnaround management can be the lifeline to enhance value and provide a credible, coherent solution, robust enough to enable companies to cope with their immediate financial future.
Working with us as restructuring and insolvency experts who routinely confront restructuring issues allows managers to get back to what they do best – running the business!
Some will inevitably fail and bringing in experienced professionals – expert insolvency practitioners, legal representatives and company owners – at the earliest possible stage will maximise the options available. Pre-insolvency options such as ‘pre-packing’ businesses can minimise negative publicity, reduce the risk of triggering default provisions in supplier and customer contracts, safeguard jobs and deliver benefits to all stakeholders.
This article first appeared in The Scotsman’s Legal Review on 1st November 2019