Review – Restructure – Recover

Review – Restructure – Recover

By | November 30, 2020 |


Baker Tilly Corporate recovery Cyprus in conjuction with CIBA organised a virtual event on 26/11/2020.

About this Event

In the current climate, many Cypriot and multinational businesses are on the lookout for mechanisms and supports to manage the impact of the Covid-19 pandemic from a cashflow and/or operations perspective.

Oftentimes, there can be more than one factor at play which can cause additional stress on the profitability of a business, examples of which include:

a) shareholder/director disputes,

b) disputes with secured lenders,

c) disputes with landlords,

d) disputes over onerous contracts,

e) legacy trading issues outside of a business’ control,

f) other factors impacting the solvency of the business which if addressed would result in a return to profitability.

These additional factors can occasionally form the basis of a company finding itself in a rapidly deteriorating insolvency event if not appropriately addressed.

The majority of business owners can envisage a return to profitability in a post-Covid environment and can support such assertions with reasonable assumptions. However, those same business owners fear the result of the aforementioned factors when combined with the impact of the Covid-19 pandemic.

Ultimately, such circumstances will result in a significant number of viable businesses ending up in a distressed liquidation scenario across the world. This can be prevented if addressed promptly.

We believe that many businesses in such circumstances should investigate availing of a breathing space period which would allow the business to restructure its affairs for a post-Covid working environment.

That breathing space should be used to address the business’ cashflow / balance sheet insolvency and any other issues which might be impacting the business, with the ultimate goal of returning the business to a sounder financial footing.

It is important that directors and senior management consider their options at the early signs of difficulties so that appropriate actions can be taken.

One such action is for your business to take part in an examinership process. Examinership is a restructuring process where a Company can reorganise its affairs in accordance with an Examiner’s scheme of arrangement to be formulated over the duration of just 4 months.

Baker Tilly Corporate Recovery (Cyprus) Limited (“BTCR”) are the foremost examinership professionals on the island of Cyprus and can call on expertise from further afield (where formal restructuring is more commonplace) if required.

In conjunction with CIBA, BTCR have organised a webinar event to take place at 3 pm on Thursday 26/11/2020.

The webinar will address important current affairs topics such as:

1. Navigating the Covid-19 volatility

2. Key Issues Affecting the Market

3. Best practice for company directors

4. Short to medium term financing solutions

5. Government reaction to Covid-19

6. Types of restructuring

7. What is examinership?

8. Key Features of examinership

9. Benefits & Downsides

10. Suitable Candidates

11. Independent Expert Report

12. The Role of the Court & of the Examiner

Additionally, there will be

i. a brief overview of some case studies from Ireland

ii. some time for questions to be posed to BTCR examinership experts at the conclusion of the webinar.

A short briefing on other BTCR service offerings will also be provided