Financial Restructuring Services
With its team of financial specialists and legal experts, Hermes Advisory assists companies that are having difficulties.
Due to our independent position, we are regularly approached by boards of directors, lenders or by shareholders to provide advice and opinions with respect to situations where the company has run into financial difficulties.
Independent Business Review
When a company is faced with a financial crisis, it is important to know what options there are. These options are driven by the anticipated availability to generate liquidity. Depending on a short initial assessment, we draw up an action plan to stabilise the crisis in the short term (cash management, monitoring short-term financing and first-step cost reduction) and to propose solutions for the long term (organisational measures and financial measures).
Organisational and Financial Restructuring
To restore a company’s health, several measures are often required. Measures may include organisational measures, such as redefining the core business, parting with unprofitable projects, selling non-essential assets or contracting out services.
The company needs time to develop these organisational measures. This time often isn’t available, because the financing conditions do not allow for this.
Our team of financial specialists, including staff who previously worked in financial restructuring and recovery, have the knowledge and experience in dealing with banks and lenders in situations involving financial restructuring and recovery. Together, we draw up an action plan and help you communicate with the capital providers.
The restructuring plan may involve the company asking to suspend the fulfilment of obligations until it has taken the necessary measures, to more stringent measures including new capital injection and the writing off of debts.
Below are a number of possible measures:
- suspend payments and secure a cooling-off period
- modify the loan conditions, including covenant resets and adjustments to the repayment schedule
- obtain additional credit for the implementation of the initiatives included in the restructuring plan
- debt reduction in combination with the introduction of new capital, or the conversion of debt to equity
- creditors’ agreement procedure/Confirmation of Private Restructuring (WHOA)
- Implement a ‘hot’ or ‘cold’ restart
Hermes Advisory – Our specialists support you in your financial restructuring
We specialise in:
- dealing with Financial Restructuring and Recovery situations
- preparing reports for the execution of a WHOA process
- provision of support as a restructuring expert
These processes are short and intensive and targeted action is taken. We know where our expertise lies and know when we have to bring in other experts, such as insolvency lawyers, tax professionals, pension advisors or employment lawyers.
As former bankers, we know how to quickly navigate your financing through the banking process. At the end of the day, providing credit and the continuation of your business are also in the bank’s interest.
“For a lender, one of the most important elements is obtaining good information. If a lender doesn’t understand what is going on in a company, it cannot be expected to make capital available. This applies not only to banking institutions, but definitely also to ‘informal investors’. We have helped many clients and banks to translate what is happening within an organisation to the information required by an investor or bank.”
If you would like to receive more information, please contact: