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COVID-19 Restructuring


IF YOU DO NOT CHANGE DIRECTION, YOU MAY END UP WHERE YOU ARE HEADING

COVID-19 Restructuring

The coronavirus pandemic is likely to lead to a steep, and potentially protracted, economic downturn. In response, many countries have implemented ambitious packages to support households and businesses. Corporate restructurings can make or break a company and require significant focus on both - the 30,000 ft view and the smallest grain of detail. Our restructuring and insolvency team is here to help businesses during these unprecedented times.

It is more important than ever for directors assessing their options in the current economic climate to seek professional advice so that decisions can be made that will best protect the company, its creditors and employees whether that decision is that the criteria for the safe harbour provisions apply and a plan can be put in place that is reasonably likely (objectively) to effect a better outcome than immediate resort to a formal insolvency process, or, that the temporary relief provided by the COVID-19 package will suffice to tide the company over, or, that the appointment of an insolvency practitioner as an administrator will best serve a company that may be viable in the medium to long term.

COVID-19 Business Restructuring

The list below is not exhaustive of the issues but hopefully highlight the need to consider and take advice on loan agreements given the current coronavirus crisis.
   - Non-payment
   - Financial covenants
   - Cross-default
   - Insolvency
   - Cessation of business
   - Expropriation
   - Breach of laws
   - Material adverse effect (MAE)
   - Audit qualification
   - Information undertakings

When a company announces a distressed situation; this is in most cases, the result of an extensive impact involving important economic, legal, tax and accounting decisions; bankruptcy, excessive debt and regulatory constraints. A restructuring exercise can turn into a fairly high-profile event, and it is crucial to the future of the company that the end-to-end process is managed with great sensitivity, confidentiality and efficiency. This still leaves thorny practical matters such as how advisers go about due diligence from the comfort of their living room and how long this uncertainty will prevail.

COVID-19 Business Restructuring

If borrowers do not comply with their obligation to inform lenders of a breach, lenders are left in a difficult position - they do not want to risk wrongful enforcement but they do need to reassess credit risk and consider protecting their position and restructuring options to hopefully avoid a formal insolvency process, and ultimately achieve a better return by keeping the borrower trading.

We frequently draw upon the expertise of our restructuring and insolvency colleagues and their experience of advising on investing in companies in distressed situations, purchasing assets and businesses out of companies in distressed situations and restructuring companies near and in insolvency. We provide expert support throughout the entire lifecycle, delivered by local and global teams. This enables us to help banks create liquidity and unlock capital for reinvestment in other value adding lending activity benefitting the firm more broadly.

Our customers engage with our corporate-restructuring team when they face structural, financial, and operational challenges such as deteriorating trends in company performance, refinancing, working capital and liquidity risks, issues with leverage, exodus of key management, clients or partners. We can assist with:
   - Practical steps to focus on liquidity and therefore long term survival;
   - Overhead reduction and other mitigation actions;
   - Management structures and change;
   - Crisis management and adoption of new strategies;
   - Cash-flow smoothing/managing payments to creditors (including HMRC and landlord discussions);
   - Security and financing issues/discussions with lenders and investors (including refinancing);
   - Informal standstill agreements/reorganisations; and
   - Formal insolvency options.

Adan's team of professionals have substantial experience in financial restructuring and executing the sales of distressed assets to maximize recoveries for investors and creditors. We evaluate a full range of considerations including market conditions, liquidity needs, and legal and regulatory issues to identify the most efficient transaction solution.

Adan can help you in structuring complex transactions across the capital spectrum to curtail dilution and optimise the capital structure based on your objectives. More often than not, these bespoke solutions involve a hybrid of equity, and debt financing.

Our team can engage with you to:

  •     Smokejump into the situation and perform a due diligence
  •     Plan and execute the restructuring process (structural, operational, financial)
  •     Produce and update business plans
  •     Manage negotiations with creditors
  •     Develop and implement cost reduction initiatives
  •     Evaluate opportunities to create new revenue channels

Featured Experts - COVID-19 Restructuring

Senior multi-disciplinary corporate and finance professionals with diverse geographic, sector and transaction focuses
Ajay Mavinkurve
Ajay is a seasoned senior-level corporate finance executive with 30+ years of diversified experience in Global Corporate Finance, IPOs, Corporate and Tax structuring, Deal structuring, Commercial Negotiation, Valuations, Venture and Private Equity syndication, M&A, Growth Strategy, Distressed Asset Management, Working Capital and Buy-outs for Small & Mid-sized Enterprises (SMEs).

Ajay
Mavinkurve

Managing Partner Corporate Advisory
London


Chennakeshav (Keshav) Adya
Chennakeshav (Keshav) is a seasoned business, marketing and technology executive with 20+ years of global corporate and entrepreneurial experience in building global companies from a concept and in leadership roles spanning M&A execution, deal origination, marketing, brand-building, market research and technology delivery.

Chennakeshav
(Keshav) Adya

Managing Partner Corporate Finance, M&A, Growth
Dubai & London


Sabapaty (Saba) Suryanarayanan
Saba is a seasoned commercial and finance professional with 30+ years of experience in in C-suite roles spanning varied geographies and multiple industry segments, including Manufacturing, Trading, Media and Financial Services in areas such as Deal structuring, Commercial Negotiation, Growth Strategy, Distressed Asset Management, Working Capital Funding, and Buyouts.

Sabapaty (Saba)
Suryanarayanan

Managing Partner Commercial and Finance
Mumbai, India


Kieran Bourke
Kieran is a Financial Risk Management expert with 25+ years of broad global Financial Services experience across Market, Traded Credit, Operational, Regulatory, and Enterprise Risk Management protocols across 4 continents. He was a Managing Director at Standard Chartered Bank at London & Singapore, where he established the commodities market risk function from scratch.

Kieran
Bourke

Advisor Risk Management
Singapore


Nav Kaplish
Nav is a seasoned business and technology executive with 18+ years of global corporate and entrepreneurial experience in building and managing digital teams and in leadership roles spanning Governance, Risk & Compliance, Audits and conceptualisation and delivery of Blockchain products.

Nav
Kaplish

Partner Digital, Blockchain & Risk
London


Freddie Tshiaba
Freddie Tshiaba is a senior business leader with 20+ years of significant experience helping investment banks, financial institutions, enterprise software companies and multi-national corporates with strategic initiatives, business development, digital transformation, product management, liquidity risk and treasury management.

Freddie
Tshiaba

Partner Corporate Finance
London


Priya Shah
Priya is a senior finance executive with 17+ years of global experience in top tier banks and private equity firm advising C-suite and Board members towards multi-million dollar projects across sectors, corporate strategy, corporate turnaround, M&A, investment appraisals, deal structuring, corporate finance, valuations, risk management, iquidity management and stress testing.

Priya
Shah

Partner Private Equity
London


Preethi Hari
Preethi is a versatile senior-level corporate professional with 18+ years of experience in Risk Management, IT Governance, IT Security, Business Continuity, Audits, Compliance and Regulatory. She specialises in COBIT/ COSO framework, ITSM (ITIL), 6-Sigma, SOX etc in Banking, Insurance, Oil & Gas, Shipping, Mining, Logistics, Telecom and Commercial Real Estate.

Preethi
Hari

Partner Risk Management
London


Vernon D Cruz
Vernon is a distinguished finance professional with 30+ years of experience in mid-sizes service organisations with demonstrated success in providing team leadership and development to foster growth. He has hands on experience in managing and running business with keen interest in Finance, Taxation, Legal, Commercial Negotiations, Commercial, Tourism & CSR.

Vernon
D'Cruz

Partner Commercial, Tourism & CSR
Mumbai


Mike Kemball
Mike is a sales transformation expert with 30+ years as an accomplished interim Sales Director and Managing Director in 15+ organisations across Telecom, Technology and Industrial sectors in Europe, India, Africa and the Middle East. Client companies and subsidiaries managed were typically $10m - $300m in revenue with sales teams from 10 up to 250 people.

Mike
Kemball

Partner Turnaround & Growth
London


George Christelis
George is an experienced finance professional with 20+ years of experience in C-suite roles for listed medium/large sized businesses in sectors such as real estate, construction, engineering and logistics.

George
Christelis

Partner Southern African region
Johannesburg


Craig Tingle
Craig is a board-certified real estate attorney with 25+ years of legal experience and has closed several billions of dollars in transactions. His expertise includes: shopping centers, shopping malls, apartment buildings, assisted living facilities, subdivisions, medical campuses and portfolios acquisitions of each of these.

Craig
Tingle

Partner Real Estate
Florida & Dubai


Thu Nga Haskovcova
Thu Nga is a Czech qualified lawyer with 20 years of international experience in M&A, Market Entry (Start-ups), Real Estate, Financing, Private Equity and Corporate law matters. Thu has in-depth local knowledge of the Central Eastern European (CEE) region and working experience in and in-depth knowledge of South East Asia.

Thu Nga
Haskovcova

Partner Central Eastern Europe, Law
Prague, Czech Rep.


A selection of transactions in progress

Our team has facilitated a variety of successful transactions across sectors, geographies and complexities.

COVID-19 services for Real-Estate Group


Deal Region : Europe
Deal Size      : $ 200 million

Sector(s):
Private Equity
Expertise:
UK CBILS - Coronavirus Business Interruption Loan Scheme COVID-19 Cash Flow Management COVID-19 Business continuity & resilience
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