The impact of the financial crisis and the global economic downturn is now being felt in Kazakhstan as the combined effect of reduced liquidity and falling demand for oil and other commodities goes on to affect other industries.
In the current market environment it is very difficult to refinance debt or raise new funds, and many borrowers will be unable to meet their debt obligations. Early detection and swift, decisive action are essential to restoring performance and value. That's why timely, professional advice is critical.
PwC’ business recovery specialists assist companies and their lenders or creditors by providing practical and commercially driven solutions
PwC can assist stakeholders in troubled companies in finding a solution by performing a tailored, objective assessment of the company’s situation and options for turnaround or recovery of their exposure. Our rapid and rigorous review analyses current and prospective financial performance, operating dynamics, asset deployment and management issues. We then identify a range of options based on our findings.
We frequently perform such reviews for banks, bondholders and other financial stakeholders around the world. The result is an independent and in-depth assessment of the company’s situation and solutions aimed at preserving and enhancing value for all stakeholders.
When a company experiences cash flow difficulties, relationships with lenders and suppliers often become strained. We assist companies in dealing with the demands of their lenders by assisting in the preparation and presentation of information and coordinating or negotiating a debt restructuring agreement. This allows management to focus on running the business and making operational improvements.
Lenders and other stakeholders need to understand the position of their business and be persuaded that its prospects are sufficiently attractive for continuing their support. Working with independent external financial advisors is often essential for the debt restructuring process to succeed - particularly where multiple lenders are involved.
For companies under pressure from issues of profitability or cash flow, selling the business or assets may prove to be the most feasible option for raising funds to repay debt. Selling the business or assets voluntarily will typically result in a higher level of realisation than a sale under duress.
PwCcan act as a lead advisor to prepare a business for sale, then advise and run the sales process on behalf of the company. To facilitate a successful sale, clear guidelines should be established for the timeframe and outcome of the sale process.
Any restructuring or turnaround usually involves operational restructuring. We can assist in developing a plan to make improvements to the company from an operational point of view and, consequently, free up additional cash to support the business and service debt. Such measures may include working capital management, overhead reduction, cost cutting and improving efficiency.
We thoroughly assess all turnaround options. We work with management, creditors and other stakeholders to develop an action plan and organise the resources required for effectively implementing this plan.
Partner, Advisory, PwC Kazakhstan
Tel: +7 727 330 3200
Partner, Advisory Leader for PwC Eurasia, PwC Kazakhstan
Tel: +7 727 330 3200