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.
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.