What are the Next Steps?
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Decisional Pathway
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Benefits
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How to Proceed
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What Do We Explore?
- All Facilitated Discussions are “Without Prejudice.”
- Review all current working capital and future cash flows
- Need to ”inventory” current and future financial commitments.
- Need to consider future contingencies such as potential employee termination packages caused by restructuring and employee accommodations
- Business traffic volume/streams (pre- and post-Covid) through 16 to 20 months ahead
- Refinancing options lending (conventional and unconventional), Purchase sale and lease-backs, Leasing, Floor planning, Factoring, Debt-Equity swaps, Hypothecated Trust deeds, Venture capital, financial brokers, in some cases CRA fairness committee, discussions with supplier credit managers.
- Utilizing older traditional bank terminology, this process is called providing a “Workout” solution.
- Dealing with present debt/leverage, and cash flow issues
- Future cash flows: what if we have another Covid wave, or traffic levels don’t increase as projected? We can discuss writing up MAC Clauses or if things improve, MFC Clauses.
- Minutes of Settlement: can be subject to ILA and/or other professional advice
- Approach to consider when soliciting financial sources