Professional advisory services for underperforming or distressed companies as well as their stakeholders such as bankers, investors and creditors.
- Financial Restructuring
- Contingency Planning and Insolvency
- Portfolio Lead Advisory Services
- Turnaround and Performance Improvement
We provide a comprehensive service to underperforming or distressed companies and their stakeholders.
One of our focus areas is offering debt restructuring solutions to companies and lenders who wish to exit or rationalize a relationship. Our services include conducting independent financial analysis, providing recommendations to creditors, supporting negotiations between debtors and creditors, assisting in disposal of non-core assets or investments as well as assisting in the development of a business plan and sourcing fresh capital to take the company forward.
We are able to provide a multi-disciplinary approach in reviewing an under-performing group or financially stressed fast-growing company, with a view to reducing their financing and operational costs, as well as improving efficiency and enhancing their fund raising capabilities.
We provide extensive and in-depth services to the client during the credit management cycle:
- Assist in initial selection of potential client and negotiation between borrower and lender in loan application;
- Review client or investee's credit rating and analyze the sustainability of its business before a lender commits to granting/increasing facilities;
- Assist borrower and lender in reaching agreement on the major terms and conditions for granting of a loan;
- Provide advice on the cross-border aspects of relevant transactions and tax planning opportunities;
- Assist in verifying the receipt of the loan money and the fulfilment of conditions as per the loan agreement;
- Monitor utilization of the loan money;
- Provide an objective opinion to the lender based on the result of an independent financial review of the borrower;
- Provide client a debt restructuring solution when the client wishes to restructure its business or to exit an investment or loan position; and
- Assist in the formulation of a corporate restructuring plan and strategies handling distressed assets.
Contingency Planning and Insolvency
We have expert knowledge of formal enforcement procedures which, combined with deep situational experience across a broad range of industries, enables us to provide strategic contingency planning advice.
Our approaches focus on the critical issues in each situation and we support companies, financial stakeholders and potential investors by:
- Advising on and developing consensual and non-consensual restructuring plans;
- Developing alternative strategies to an existing restructuring plan, either as a genuine alternative or to expedite a restructuring process;
- Using insolvency to manage onerous liabilities;
- Achieving recoveries in contentious scenarios by using insolvency powers to pursue investigations and asset recoveries.
We provide insolvency solutions to companies in the absence of a viable business option. Our breadth of insolvency skills enables our team to design detailed solutions which can be delivered across borders and over a wide range of industries.
Our insolvency and liquidation services include:
- Bankruptcy/ Liquidation (Mainland China)
- Court Liquidation (Hong Kong)
- Creditors' Voluntary Winding Up (Hong Kong)
- Members' Voluntary Winding Up (Hong Kong)
- Receivership (Hong Kong)
- Personal Bankruptcy and Individual Voluntary Arrangement (Hong Kong)
- Exit & Recovery Services
We are experienced in advising investors on the most appropriate course of action in a situation where the performance of an investment is deteriorating and/or the investor is losing control of operations, particularly in the case of joint venture operations. We advise on appropriate strategies for a successful resolution of the situation to ensure returns are maximized or any loss minimized and the client's reputation is safeguarded. We are experienced in dealing with joint venture partners in Mainland China and other stakeholders to gain maximum leverage out of its limited tools available to exit such investment.
- Closure Management
Our team offers a full range of closure management services in assisting clients to wind down a business properly in a timely and effective manner.
We can act as the lead project manager to assist in the formulation and orderly implementation of a restructuring plan which may include the closing down or disposal of loss making or non-core business/operations. Our services include prioritizing work and coordinating multidisciplinary advisors so as to ensure that relevant concerns are properly addressed and the necessary services are delivered in a consistent and timely manner.
- Estate Administration
We have a team of professionals experienced in managing and administrating businesses and estates of deceased persons or persons for whom the court has made a relevant appointment under the Mental Health Ordinance.
We have a proven track record of adding value for stakeholders in complex situations.
Portfolio Lead Advisory Services
Our team has extensive deleveraging and loan sale experience and has spent many years advising banks on portfolio acquisitions and disposals in China. We have extensive experience in leading major workouts and in assisting banks selling non-performing loans to asset management companies.
We work closely with all stakeholders in China and add value throughout the deal lifecycle, from strategy & preparation to sale process and disposition.
Strategy & Preparation
Services we offer in strategy and preparation include:
- Provide portfolio strategy advisory;
- Perform vendor due diligence;
- Perform valuation services;
- Advise on corporate restructuring issues;
- Advise on real estate issues; etc.
Our team can liaise with potential buyers to provide support in the bidding process, including formalising non-disclosure agreements and selection of bidders etc.
Sale Process and Disposition
We can assist clients in the sale process by providing advice on the drafting and finalizing of sale and purchase agreements, finalizing binding bid, setting up data room etc.
Turnaround and Performance Improvement (including Corporate Restructuring Advisory)
Turnaround and Performance Improvement
Where companies are facing financial, operational and/or industry challenges, our team is able to offer support with a distinct range of services to the company's management to ensure that stakeholder value is protected. It typically involves position review and an options/ scenario analysis, aiming to bring synergies and incremental value to performance improvement.
A position review is often requested by stakeholders in order to establish a sound basis on which to negotiate and move forward. Our position reviews provide real commercial, operational and financial challenges to management’s business plans and an evaluation of the risks and potential upsides of the forecasts. We establish a realistic set of “post-vulnerability” numbers which form a basis upon which stakeholders can assess with confidence future profits and cash flow, and the value of the business.
Early identification, evaluation and prioritization of the options available to stakeholders are key to achieving a successful improvement in performance. There could involve a covenant reset, refinancing, amending and extending, performance improvement, sale of all or part of the non-core assets/ business, etc. We can assist clients with the preparation of robust ‘bankable’ business plans which form the basis for successful performance improvement.
Corporate Restructuring Advisory
In the event that companies are unable to meet near-term obligations and there is a risk of default or failure in the short to medium term, we offer a distinctive end-to-end approach to:-
- Stabilize the business from a financial, cash and operational perspective;
- Identify and manage the key stakeholders;
- Understand the key financial and operational issues facing the business;
- Prepare a regularization plan with buy-in from the bank creditors;
- Ensure that there is a viable contingency plan should ‘Plan A” not be successful;
implement a performance improvement solution.