Why undertake a Strategic Review?
It is important for all companies to prepare up to date financial information. This will form the basis for decision making in order to take action as soon as possible in relation to possible cash flow issues and to identify problem areas within the business.
Often, a re-negotiation with a landlord of the terms of a lease on the business premises is essential for a company to survive and will often be central to the strategic review and restructuring of the business.
Why engage Hughes Blake to carry out a Strategic Review?
Hughes Blake is well positioned to assist companies to carry out a review of its business and prepare recommendations in relation to the business.
Our expertise will enable the company directors, who are often the drivers of revenue within the business, to concentrate on meeting the customer’s needs and eliminate their requirement to carry the burden of restructuring the business.
What is the output of a Strategic Review?
Hughes Blake will provide a report for company management and through consultation, a plan for the business going forward can be formulated.
Why undertake a Company Restructuring?
The number of company failures in Ireland is increasing and the current economic climate is bringing new challenges to companies with limited funding from financial institutions resulting in an increased number of company failures from cash flow difficulties.
How can a Company restructure?
Hughes Blake has substantial experience in assisting companies restructure their business to secure the long term viability of the company. Restructuring can be carried out through the formal process of Examinership (www.examinership.ie) or through restructuring of the company’s assets and liabilities.
How can Hughes Blake assist?
Once the problems within a business are identified, Hughes Blake will assist the company find a solution to its problems by:
• Preparing or reviewing projections prepared by the company
• Reviewing the current financial position of the company
• Preparing a report (or plan) for the company including recommendations
• Negotiating with relevant parties including Revenue Commissioners, financial institutions, leasing creditors, trade creditors
• Preparing an Informal Scheme of Arrangement
What is an Informal Scheme of Arrangement?
Unlike in the case of an Examinership, there is no requirement to appoint an Examiner through the High Court in relation to an Informal Scheme of Arrangement (“Informal Scheme”).
An Informal Scheme is an agreement between a company and its creditors in relation to the liabilities of the company which will normally involve the writing down of the unsecured liabilities or their repayment over time.
What are the main differences between an Informal Scheme of Arrangement and a Scheme of Arrangement in Examinership?
The Informal Scheme does not have the same certainty as provided through a scheme of arrangement in Examinership and the Revenue Commissioners are not permitted to compromise its debt with the company through an Informal Scheme.
How can Hughes Blake assist?
• Provide guidance on the suitability or otherwise of a company approaching its creditors in relation to an Informal Scheme.
• Liaise with creditors on behalf of the company.
For more information, contact
Neil Hughes, Managing Partner – neil.hughes@hughesblake.ie or
Kieran McCarthy, Partner – kieran.mccarthy@hughesblake.ie