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Chief Restructuring Officer Service ("CRO")
Providing stability and leadership to companies in need
A Deloitte CRO can add value in a financial and/or operational restructuring in a distressed or underperforming but also in a performing organisation.
Whenever a company is slipping into financial or operational turmoil, yet its Chief Executive Officer (“CEO”) has to closely focus on day-to-day business, the appointment of a Chief Restructuring Officer ("CRO") can be a valuable option. Today, the financial community increasingly recognizes the importance of companies hiring a CRO as this role supports creditors and shareholders in efforts to rebuild confidence. More importantly, a CRO has the experience and know-how to help stabilize a business, which subsequently results in value creation or preservation.
A professional restructuring approach requires strong, dedicated leadership – experienced executives familiar with restructuring processes and routines and ultimately aiming to bring about successful processes and results.
How Deloitte can help
A CRO is an experienced partner for business leaders and stakeholders to deploy in critical or crisis situations. Whether it be a need to drive a balance sheet repair, deliver an operational restructuring, or implement rigour and pace into a transformation program, Deloitte provides independent senior professionals with the required situational experience, credibility, and expertise that can serve at board level. In addition, our experts are capable of tapping into the global Deloitte network for specific expertise.
The CRO’s responsibilities would typically be focused on:
- Creating a business plan that demonstrates mid- and long-term viability supported by believable assumptions about the future.
- Leading forbearance and restructuring arrangements with senior lenders.
- Assisting and/or negotiating directly with trade creditors to assure continued support.
- Assisting in sale and equity transactions.
- Assisting management in identifying profit and cash improvement projects.
- Identifying solutions and assisting management in working out arrangements with unsecured creditors.
- Locating outside sources of capital if required.
- Ensuring there is sufficient cash flow for a business to weather the crisis.
- Where necessary, assisting management in negotiating out-of-court settlements or preparing and navigating through a bankruptcy filing if this is required