Financial Restructuring 

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.

• 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.