Turnaround Management is where the Company has had a setback which has caused the Company to have outstanding debt with its suppliers.
An example of this is where a minor or moderate debtor is unable to pay a Company for its services, however the Company has already paid for and provided the debtor with its goods or service. Like a manufacturing Company building parts for a debtor which is installed in the debtor’s finished products but the Company has not been paid the final two payment instalments. Given that the debtor has not paid, the Company may not be able to pay all of its creditors as and when they fall due. Whilst this may be a setback for a number of months, it may not be fatal to the Company.
As long as the Company’s business is viable long term, turnaround management may be an option. If the Company’s business is not viable long term, it is better to look for another way to progress forward for both the Company’s business and the Director(s). When we work with Company Director to turn the Company around, we will make an initial assessment to determine if the Company’s business is viable long term and discuss our findings with the Director(s). We utilise our turnaround management skills, when we restructure a business or utilise safe harbour.