CORPORATE RESTRUCTURING

We specialize in mapping the course for financially-distressed companies and guiding their way to profitability.

Financial troubles are often invisible until the company has a serious cash-flow deficit and/or has violated loan covenants. Meridian applies its depth of management and financial expertise in workout situations to analyze what actions need to be taken. This assistance can be critical in keeping the struggling company's focus on serving its customers, while resolving its internal problems.

A turnaround situation can impact any and every area of a company, including its customers, lenders, trade creditors, employees and competitors. The utmost confidentiality must be maintained to protect the market image of the company throughout this time. From experience, our team understands the effort required to guide a company through the crisis. Our depth of management enables us to address multiple problem areas simultaneously.

 Stages in Corporate Restructuring and Turnaround Services

  • Analyzing and altering operations to be more effective and efficient

  • Developing a restructuring plan that meets the long-term goals of owners and management, while also satisfying the short-term needs of various creditor groups. This stage requires an in-depth analysis of asset utilization, current cash flow demands, and future cash flow needs for funding day-to-day operations, as well as capital expenditures

  • Negotiating with various creditor groups to gain support for the continued operation of the company

  • Reconfiguring the debt of the company to minimize cash required for servicing the debt, and redirecting cash flow to company operations during the reorganization phase

  • If necessary, replacing existing creditors with debt from financial institutions that specialize in financing for distressed companies

  • Assisting management in meeting goals defined in the plan and agreed to by all concerned parties. Initially this stage centers on the improvement of liquidity. This may be accomplished through improving collections, reducing inventory, delaying and prioritizing creditor payments, deferring capital improvements or the sale of divisions, subsidiaries or other assets