Financial Distress Management and Sustainability Sector

We are proceeding along three main tracks, encompassing all aspects of rescuing companies from the risk of default. These include:

First Track: Preventive Measures for Managing Default Risks:

(1) Urgent and decisive strategic diagnosis to analyze performance gaps and identify the root causes of potential or actual default.

(2) Strengthening governance principles and implementing legal safeguards.

(3) Establishing a robust program for resolving critical and urgent disputes.

(4) Forming a cash flow management operations center and implementing strict and immediate controls on cash utilization to ensure the continuity of operations.

(5) Developing a comprehensive professional strategy to lead negotiations with financing entities for the rescheduling of loans and obligations on flexible and favorable terms.

(6) Taking urgent preventive measures to ensure legal safeguards and protect company assets from legal action during the recovery period, while also controlling the root causes of default.

(7) Forming a professional team to manage the transitional executive team and lead the change process. This will ensure impartial and objective decision-making and strengthen confidence in the company’s present and future prospects.

The second track: Preventive measures to manage the risk of default:

(1) Engineering the financial recovery process, including debt restructuring, obligation rescheduling, and developing a cash flow management system.

(2) Identifying and immediately closing points of unjustified financial losses or waste through decisive measures.

(3) Building a realistic financial model that accurately defines the requirements for maintaining the break-even point within a comprehensive vision for overcoming the risk of default.

(4) Reassessing the company’s product and service portfolio, streamlining production and service lines, and establishing controls to focus exclusively on the most profitable and rapid activities.

(5) Re-engineering supply chains and creating incentives to establish new agreements with suppliers to ensure a steady flow of supplies at the lowest cost and with the best payment terms.

(6) Developing a matrix of exceptional powers and a governance system that allows for flexible strategic decision-making to address the causes and consequences of default.

(7) Developing and implementing a professional and transparent communication strategy to manage communication with stakeholders and restore their trust.

Third Track: Structural Changes to Manage Default Risks:

(1) Operational restructuring by improving processes, reducing waste, and increasing asset utilization efficiency.

(2) Activating a sound leadership approach to manage the transition phase and prevent a crisis.

(3) Reassessing the company’s competencies and evaluating their role in mitigating default risks and ensuring stability and sustainability.

(4) Developing a professional vision for monetizing and redeploying certain assets and identifying areas for converting non-performing assets into immediate cash to support core operations and contribute to meeting critical and urgent obligations.

(5) Developing a vision that includes alternative financing options and attracting investments.

(6) Evaluating the feasibility of preparing the company for strategic partners or venture capital funds.

(7) Reviewing performance indicators and the risk management system to monitor strict adherence to the rescue plan.

(8) Smart development of the company’s human capital structure to retain rare specializations, maximize the utilization of outstanding talent, and motivate them to lead the rescue and transformation process.

(We have a mechanism to review the priorities of these tasks on the three tracks according to the circumstances of each individual case)