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Debt Restructuring

SOS.BIZ, in partnership with its Practitioners' Business Network, offer top notch competencies and specific professional experience to secure a definitive solution pattern for financially distressed firms. We, in particular, apply a full Feasibility Analysis and Asseveration of Debt Restructuring Plans as per recently Italian renewed restructuring procedures on Private Transactions and Bankruptcy Provision, i.e. "Law n.134/2012".


Specific applications on following transactions: ex. art.67 (out of the Court), ex. art.182 bis and art.161 (in the Court).


 


SOS.BIZ assess your industrial plan and financial restructuring to secure full adherence with your creditor expectations as well as to make sure your future performance is a feasible proposition.


SOS.BIZ offer you the capability to translate into operational terms all performance KPI's (including the financial covenants) of your industrial plan through a very articulated, yet simple to absorb, deployment and monitoring process architecture.


 

SOS.BIZ assessing a Restructuring Plan


1. ASSESS THE CURRENT


1.a The Market (segmentation thru: geography, sector, product, SKU):

  • The Demand
  • The Competition
  • The Clients (B-2-B, B-2-C)
  • The Suppliers


1.b The Strategy Map:

  • Mission, Values, Vision (Firm Corporate Genome fundamentals)
  • Strategic Analysis & Map
  • Strategic Formulation (why/what/how)


1.c The Business Cycles (based on strategy map):

  • The Commercial Cycle
  • The Production Cycle
  • The Economic Cycle
  • The Financial Cycle


1.d The Organization & Design Elements:

  • Task & Job Descriptions
  • Structure & Capacity
  • Skills & Capabilities
  • Decision Making & Delegation of Authority
  • Reward System & MBO
  • Information sharing & ERP-based KPI Scorecard
  • Budgeting Process
  • Business Review & KPI’s GAP Analysis (Monitoring Process)

 

1.e Business actual KPI’s (metrics, margins, indexes, flow balances):

  • Income Statement
  • Balance Sheet
  • Financial Statement

 

 


2. DESIGN THE FUTURE


2.a Biz planned KPI’s (metrics, margins, indexes, flow balances):

  • Income Statement
  • Balance Sheet
  • Financial Statement

 

2.b Delta KPI performance = Future KPI Perf. - Current KPI Perf. 

  • Delta Work = Future Work - Current Work
  • Delta Organization =  Future Organization - Current Organization
  • Delta Skills = Future Skills - Current Skills

 

2.c Stress/Sensitivity Analysis on KPI Delta Performance 

  • Minimum Acceptable Distressed Threshold Limit (restructuring plan still works)
  • Not Acceptable Default Breakage Threshold Limit (restructuring plan breaks)

 

 


3. DEPLOYMENT & MONITORING: SUSTAIN THE FUTURE


3.a Break-down plan strategy and KPI’s metrics into operational terms:

  • Economics (Revenues, Costs, EBITDA, EBIT, Net Profit A/T)
  • Financials (Net Working Capital: DSO, DPO, disbursements, inventory, etc.)
  • Debt Reimbursement Feasibility Outlook

3.b Benchmark all critical KPI’s objectives towards three targets:

  • Base Plan Target (by Restructuring Plan)
  • Minimum Distressed Target (by stress/sensitivity analysis)
  • Default Target (by stress/sensitivity analysis)

3.c KPI Scorecard is structural element of Master Plan:

  • Allocate Contingency Plans into Economics (reserves) based on Stress/Sensitivity Analysis
  • Assign all (100%) actions listed in the Restructuring Master Plan to “named” responsibility and accountability (including contingencies)
  • Assign frequency of measuring to each selected KPI (weekly, monthly, quarterly) within the Gap Analysis process
  • Institutionalize the Gap Analysis Schedule for a strict and rigorous business review and action plan re-assessment (all based on DELTA’s)


3.d Go live !!!