A troubled company is a company on a path to financial crisis guided by a management team that fails to recognize it is on that path. Understanding when a business is in trouble matters because identifying the problem early provides more flexibility for a solution and lessens the risk of eroding shareholder value.
When a company is in trouble, management must side-step the external stresses and focus more on core profit generating activities.
On Crystallex, the Ontario Court of Appeal has upheld an extraordinary DIP financing agreement.
Management sponsored turnaround plans always boil down to: i) tweaking the existing business plan; and, ii) getting more money. But, every troubled business is troubled because existing management was ineffective.
Those who know us best will tell you Range Advisors excels at providing going concern solutions to troubled companies. Over the coming weeks and months, we will explore tips and guidance from the turnaround trenches. Inside are 10 turnaround tips to get you started.
