Referring a Certified Turnaround Professional to engage with a business that has stopped servicing their debt, can at best, help secure lenders regain confidence in and communication with clients, and at worst, gain clarity on the situation security available, and provide options under various scenarios. When referred by a secured lender, we meet with the company’s key decision makers first to ensure that the company recognizes the situation it is faced with, that assistance is wanted, and that there is a mutual fit – the company must want to change for Randy to engage with them. If the company wants to undergo a turnaround and/or restructure process, Randy begins with an in-depth review, compiling and analyzing data to determine the company’s potential to continue, and to assess the situation. If circumstances are such that a turnaround or restructuring effort would be ineffective, Randy advises both parties. If the company can effectively turnaround, Randy liaises between the company and lender, ensuring that each party understands the situation. Specifically, Randy helps to communicate the bank’s perspective to companies, what it means to be in special loans, and what the lender is looking for. In order to aid the client in restoring lender confidence, he works with them to develop a report – a budget, plan, and timeline for operational and financial restructuring, including assumptions, options, scenarios, and milestones. Often the plan involves reductions in staff, foreign operations, and assets as well as negotiating debt restructuring. If the lender requests a forbearance agreement, Randy can act as the Chief Restructuring Officer to oversee the plan’s execution and report progress to the lender.
Throughout the engagement with the company, Fries Financial provides the lender with an open and direct line of communication, evaluating the situation and reporting back. And even though the company is technically Fries Financials’ client, Randy is forthright, honest, and transparent with the lender for the engagement’s duration because re-establishing trust between the company and the lender is the reason for our involvement.