A company in distress requires immediate actions to avoid the accentuation of the crisis situation, making its recovery or turnaround difficult. These are scenarios which combine the scarcity of cash, the rapid deterioration of the business and the balance sheet as well as the lack of time for making decisions.
From Lener we will accompany you in these complicated situations, integrating ourselves with the executives of the company and being involved in the diagnosis of the problem, the development and execution of the action plan and the definition of the strategy to follow for the recovery of the business, taking into consideration the circumstances and needs of each case. We work under the following premises:
Multidisciplinary teams of professionals with high specialisation in the financial, legal and operative areas.
Wide sectorial knowledge.
Integration with the executives of the company at the highest level in order to take note and make decisions.
Design of the realistic strategic and operative solution in the shortest time possible.
Complex “customised” solution for each company.
Proactive execution of the designed solution.
Search for the company continuity as its objective.
Negotiations with all the agents involved.
We operate in the principal sectors of economic activity, having participated in recent years in more than 150 restructuring operations in different sectors such as health, hotel, food, retail, industrial, real estate, sports, construction and real estate promotion, having managed more than 4 billion in debt.
We have accumulated extensive experience in bankruptcies, having participated successfully in the largest arrangement with creditors of Spain of a non-real estate company. We have also closed numerous operations successfully of purchase and sale of businesses in a situation of distress.
Counselling on restructuring and turnaround
On occasion, the companies have to adapt their structure and their operations to new scenarios. In this type of situations, when treasury tensions surface and very high indebtedness is evidenced, it becomes necessary to turn to restructuring operations that ensure the viability of the company.
We at Lener accompany you in the entire company restructuring process, being involved at the highest level in the design, definition and implementation of the restructuring plan.
We provide experience and help to the executive team in successfully confronting this type of processes.
Our professionals, being actively involved with you, help you to confront the following actions:
- Leading the restructuring process.
- Stabilising the operations.
- Diagnosing the problem.
- Developing the business plan.
- Designing the restructuring strategy.
- Searching for financing / Fresh Money: structural and operating.
- Complex capitalisation structures / participative loans convertible into shares to optimise the financial structure both at the equity level and of sustainable indebtedness.
- Monitoring and maximisation of cash.
- Cost savings plans, design, execution and monitoring.
- Reestablishing of trust and dialogue with the involved agents.
- Leading the negotiations with creditors.
- Negotiation and preparation of refinancing agreements.
- Where applicable, leading the judicial homologation process.
On occasion a corporate operation is the best solution for a company in crisis and allows maintaining the business and a large part of the employees. We design the optimal legal and economic structure in view of maximising its value and eliminating all the legal risks.
Our professionals, being actively involved with you, will help you to confront the following actions:
They identify with the interests of a company or risk capital fund in adding new companies of its sector of activity to your business and to the portfolio of investees.
It deals with profitable businesses in structures with high leverage or with management problems that can be potentially profitable in a healthier structure and with optimal management. It is a question of taking advantage of the synergies that are produced by the greater dilution of costs in the acquiring company.
Our knowledge of the market, together with long experience and profound knowledge in financial, bankruptcy and corporate finance matters allows us to design the most adequate and efficient structure for each operation.
In some cases, due to the stage of the crisis situation, it is necessary and inevitable to turn to the bankruptcy process, as a formula to solve the company crisis and in compliance with the obligations established by the bankruptcy and commercial laws for the company directors.
Lener has a team of professionals with long experience in the management of pre-bankruptcy and bankruptcy processes, having participated successfully in the largest arrangement with creditors in the history of Spain regarding an industrial company. Moreover, within the Lener Group we have the Lener Bankruptcy Administrations division, dedicated exclusively to the exercise of the Bankruptcy Administration, which gives us a vision of the discipline from all angles.
From Lener we will accompany you in this process of such a profound change, engaging ourselves in the project and identifying the best alternative to develop:
- Our counselling encompasses all the phases of the insolvency process, from when the company identifies the impossibility of confronting its obligations to when the first problems of normal development of the activity appear.
- We analyse the financial situation and plan the bankruptcy strategy focussing on the treasury and on the maintenance of the activity.
- We give advice on the preparation of the bankruptcy petition and the documentation necessary, and in the exit strategy of the bankruptcy for the maintenance of the activity: agreement with complex capitalisation structures to optimise the financial structure at both the equity level and the sustainable indebtedness, sale of productive unit, etc.
Independent business review (IBRs)
In the context of debt refinancing, the preparation of an Independent Business Review – IBR – and shown to the creditors of the company, supposes an exercise of transparency that facilitates to a high degree the achievement of a refinancing agreement with the creditors.
At Lener we have broad experience in the preparation of IBRs and we have the necessary independence by not having an auditing company in our organisation.
The advantages of the preparation of an IBR for a company in a restructuring project would be the following:
- It provides an independent vision of the business.
- It identifies the principal assets, liabilities, EBITDA-generating capacity, principal indicators (KPIs) of the business, etc.
- It carries out a risk evaluation that can affect the evolution of the company in the future.
- It presents the cash situation on a short- and medium-term time frame.
- It constitutes an orderly and transparent process in the negotiation with the creditors.
- It facilitates decision-making for all the agents involved.
Counselling on projects and national and international projects and business.