United Kingdom

Financial Restructuring 

We work with both corporates and stakeholders at a time of intense pressure, to deliver a thorough advisory service throughout the financial restructuring process. We offer our clients the financial advice they need and have extensive contacts and relationships with providers of finance to stressed companies. We also work with stakeholders to assist them in developing and implementing their strategies in respect of underperforming investments or borrowers.

What's on your mind?

 

  • High borrowings compared with ability to generate cash.
  • Risk of breach of banking covenants or borrowing limits.
  • Poor banking relationships.
  • Facilities due for renewal, against unfavourable market conditions or poor trading performance.
  • Deteriorating cash flow performance.
  • These issues may lead to a need to reconfigure the balance sheet.

 

Bringing you peace of mind

 

  • A wide- ranging advisory service throughout a financial restructuring process.
  • Preliminary assessment.
  • Liquidity and working capital management as needed.
  • Development of robust operational and financial plans
  • Sourcing interim executives.
  • Strategic financial advice/advice on alternative financing options.
  • Communications with key stakeholders and debt negotiations/refinancing.
  • Contingency planning.

 

What's in it for you?

 

  • An integrated service, which helps clients through the financial restructuring process - led by experienced KPMG people used to working in this environment.

 

Why KPMG?

 

  • We can offer our clients the financial advice they need at a time of intense pressure, in comparison to a number of investment banks who can only provide limited advice.
  • We have extensive contacts and relationships with providers of finance to stressed companies - meaning that we understand the mindset both of existing lenders to a company and the requirements of potential new finance providers.
  • Where appropriate, we can introduce Chief Restructuring Officers to situations to provide executive support to management teams through the process:  this is a key service that very few other market participants can offer.

 

Case Study - Project Silver

 

  • UK quoted, leading European convenience food manufacturer. Turnover approx £1 billion.
  • The Group had missed its profit forecast by 50 percent.
  • Due to a lack of brand management, new product development and key customer management, the group was under-performing in its market.
  • Prior to our involvement, it had issued a profit warning and saw the resignation of the CEO.
  • In particular, two of its divisions were identified as seriously under-performing.
  • KPMG challenged the Group's outturn and forecasts at both divisional and Group level and assisted the Group in preparing three information memoranda to enable the Banks to consider a refinancing.
  • We worked with our Debt Advisory team to build a model to consider various financing options and to negotiate new banking covenants. We also prepared a business review enabling the Banks to rely on KPMG.
  • The refinancing of £270 million of bank debt was achieved at a relatively low cost considering the distressed state of the Group and on terms which were not too restrictive for the client.
  • The Group successfully refinanced and the Banks were able to gain a greater understanding of the issues faced by the Group and steps it will take to reduce their exposure.