Restructuring Solutions

How can Deloitte Restructuring Solutions help?

Our approach and hands-on service has helped many struggling companies, from small businesses to large companies, back on their feet and on a path to growth and prosperity. Our experienced professionals based at offices in Dublin, Cork, Limerick, Galway, Waterford and Belfast will see you on your way to recovery.

Our services include:

• Turnaround
• Examinership
• Schemes of Arrangement
• Creditors voluntary (insolvent) Liquidation
• Members voluntary (solvent) liquidation
• Court liquidation
• Services for lenders
• Receivership

Turnaround

We can create and deliver robust turnaround strategies quickly and cost effectively.

By working with management, we ensure the recovery plan is a roadmap for achieving sustained improvement in operating and financial performance.

We have strong relationships with all the major banks which is invaluable when we are assisting you to negotiate and agree a recovery plan with your creditors.

We are experts in examinership and schemes of arrangement, Ireland’s two main corporate rescue processes.

In this difficult economic environment, sometimes a company cannot be rescued and an insolvency process, such as a creditors voluntary liquidation, is the most appropriate option. If it is, we will set out your options, explain what is involved and help you through the process.

We can also advise directors and business owners on the various debt solution options introduced under the Personal Insolvency Act 2012 to develop solutions to achieve renewed financial stability. 

Examinership

Where a company is struggling with excessive debt, but has a solid underlying business, examinership should be considered. Examinership gives companies breathing space to find fresh investment and put a proposal to its creditors.

It typically involves rents being reduced and a significant amount of the company’s debts being written off, enabling it to emerge from the process in a much stronger financial position. During the examinership the company is able to continue trading and the directors remain in control throughout the process.

We can advise the directors how to achieve this and act as Examiner to ensure a successful outcome is achieved.

For more information on our examinership services, please click here.

Liquidation services

We have wide experience of the three most frequently used types of liquidation in Ireland: creditors’ voluntary liquidation; members’ voluntary liquidation; and court liquidation.

A creditors’ voluntary liquidation is frequently used by insolvent companies that have no reasonable prospect of survival. It stops the company’s creditors’ position from deteriorating and helps bring closure to an unsustainable position for a company and its directors, with all the attendant anxiety and stress.

Members’ voluntary liquidation is a process used to wind up a solvent company that has ceased trading or is dormant. It offers savings on ongoing audit and accounting costs and in management time previously taken up with the preparation of financial information and tax returns.

A court liquidation occurs when the court puts an insolvent company into liquidation after hearing a winding up petition.  

Services for lenders

We carry out independent business reviews of borrowers on behalf of lenders to analyse drivers of cash flow and assess the viability of a business. 

We assess trade performance, business risks and where improvements can be made so that our reviews provide you with a clear view of the borrowers’ ability to service their debts and the restructuring options available.

The fact that our business reviews are quick, concise and cost-effective has proved very helpful to lenders when deciding what form a restructuring should take, whether it be a refinancing process or asserting security rights. 

We can also advise you on the best option to take and help you with the negotiation and implementation of the restructuring process to ensure that it is successfully achieved.

We work extensively with many of the major financial institutions, who find our expertise and experience invaluable in dealing with the challenges facing them.

What is Receivership?

If enforcement action is required we can act as Receiver. Prior to taking an appointment as Receiver we will agree a strategy with the charge holder to ensure that once we are appointed we can deliver maximum realisation for our client. We work closely with specialist lawyers, asset managers and valuation agents, as well as our own in-house tax and corporate finance experts, to ensure that we achieve the best possible outcome for our clients.

Trading receivership
We deliver innovative and practical solutions for the charge holder. For instance, sometimes, a pre-packaged sale of a business or property may be the optimal strategy for the lender and the company. In such cases, negotiations are carried out prior to our appointment with the key stakeholders. This enables these receiverships to proceed quickly and smoothly so that value is retained and jobs are saved.

Our knowledge of insolvency and our experience of trading in a receivership environment enable us to anticipate and mitigate many of the issues that arise on appointment. We have particular expertise in retail, manufacturing, hotels, property, waste management, nursing homes and construction.

Property receivership
For each appointment we prepare a bespoke strategy with a view to ensuring the best return to the charge holder, by a combination of maximising revenues, asset disposals and debt reduction. We have also taken receivership appointments across a wide range of property portfolios, from single property holdings up to large multi-jurisdictional property portfolios.

Insights: Quarterly Deloitte Insolvency Statistics

The latest insolvency statistics published by Deloitte show corporate insolvencies in Q1 2018 have totalled 188. When compared with Q1 2017 (219) this represents a decrease of 14% and is in line with the average rate of decrease observed over the last 5 years.

A closer look at the detail shows that of these 188 corporate insolvencies, creditors’ voluntary liquidations accounted for the majority, with 118 recorded in the period (63%). In the comparable period in 2017, creditors’ voluntary liquidations accounted for 114 of the appointments recorded. In Q1 2018 54 receiverships were recorded (29%) compared with 86 in Q1 2017. This mix of insolvencies is typical of other prior periods.

Keep up to date with our quarterly report on our Restructuring Solutions homepage.