Insolvency: Turnaround and formal arrangements

Formal arrangements provide an effective strategy but will require the help of a turnaround specialist.

Key points:

  • Analyse the business to identify which areas have underperformed
  • Write a strategic plan for recovery to cover a 12 month period
  • Keep major creditors informed of the situation
  • Constantly monitor and review the plan to adapt to circumstances
  • Rule nothing out - look at all options if the required improvements are not happening

Remember, creditors would rather accept a percentage of the debt than to receive nothing through insolvency.

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