Insolvency: Turnaround and informal arrangements
If, after analysing the business the conclusion is that it is worth saving then a strategic plan of action should be created to address specific areas of weakness such as:
- Cost reduction
- Capital restructuring
- Concentration on profitable products
- Disposal of part of the business
- Improvement of financial controls
On the basis of the strategic plan informal arrangements can be made with creditors to pay off the debt.
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