Cash flow problems? Profitability at a low ebb? Debts to the tax authorities, VAT or the NSSO? JRP and bankruptcy are not inevitable, provided you react. Here's how.
Is your business experiencing difficulties? Don't give up: our experience has proven to us that there is often a solution. We offer you tailor-made support to help you evaluate the situation, decide on the measures to be taken and implement them.
Restructuring your business in three steps
1. Evaluate the situation
First step: gather all the elements necessary to evaluate the situation. Depending on your situation, this means:
- Analyzing the evolution of your accounts to identify the origin of your situation (if necessary, establishing your latest annual accounts beforehand)
- Studying the profitability of the different activities with the idea of deciding which ones to pursue and identifying cost reduction opportunities
- Drawing up the list of the company's creditors to evaluate the degree of debt and the urgent or non-urgent nature of the repayments
- Drawing up the list of the company's debtors, with the aim of estimating the possibilities of financing part of the repayments
- Creating a cash flow plan to identify upcoming deadlines and the means necessary to meet them
2. Establish a list of actions and define priorities
As soon as we have finished analyzing your company's situation, it becomes possible to discuss together the decisions that are necessary to resolve the situation.
To start, you should decide between three possible options:
- The reorganization with continued activity
- Starting a JRP — a judicial reorganization procedure. The JRP allows you to obtain temporary respite from creditors and to have the necessary perspective to evaluate the possibility of restoring the company.
- Filing for bankruptcy. If it is not possible to return the company to a situation where it records profits and repays its debts, it is better to act as quickly as possible to protect yourself as much as possible from the consequences of a bankruptcy on your own assets.
If it is possible to recover your business, a plan of the different actions to be implemented should be determined. Depending on your situation, this will involve among other things:
- Deciding which activities to pursue and which activities to stop
- Implementing a cost reduction plan
- Deciding on the advisability of implementing the recovery of unpaid debts from your debtors
- Deciding on possible dismissals
- Developing several repayment scenarios for each creditor to prepare for negotiations
3. Implement your recovery plan
The last step consists of implementing the different measures you have planned. We also support you at this crucial stage. Our lawyers are indeed ideally placed to:
- Negotiate with the different parties to reach a balanced agreement
- Identify possibilities for obtaining restructuring aid
- Call on, if necessary, a network of trusted professionals: notaries, real estate experts, accountants, company auditors, bailiffs.
Is your company in difficulty?
Do not hesitate to contact us. We will carry out an initial evaluation of your situation during a preliminary interview.