Comprehensive insights from a successful UK restructuring plan, highlighting key strategies, stakeholder engagement approaches, and practical lessons for business turnaround professionals.
Click DOWNLOAD FULL INSIGHTS for all the details.
Stakeholder engagement was at the core of this restructuring. The Restructuring Plan was designed and executed by K2's turnaround professionals, who also prepared all documentation, saving significant legal and advisory costs.
Regular and transparent dialogue with multiple HMRC departments helped overcome obstacles and secure buy-in. Draft documents were shared early to avoid surprises.
Only two classes—secondary preferential and unsecured creditors—were included, leading to clear, decisive votes in favour (100% and 99.5% respectively).
The plan included a detailed roadmap covering cost reduction, operational reorganisation, management changes, and improved working capital.
Effective coordination of court timelines, creditor communications, and document preparation was vital. A proactive court clerk expedited hearings.
K2 advocates the need for standard templates to improve efficiency and consistency in future restructuring plans, drawing on CVA experience.
Extensive disclosure of assets, liabilities, and business plans. CVA-style documentation were used to build credibility with courts and creditors.
Restructuring hearings are public. Prepare for press attention that could affect ongoing trading relationships with banks, staff, creditors and customers.
Implement systematic creditor communication using PSLs to gather email contacts early and maintain engagement throughout the process using creditor management software.
K2 is a boutique turnaround and restructuring firm providing hands-on advisory and interim leadership to companies in distress. With over 100 years of combined experience between them, its five professionals specialise in stabilising, restructuring, and restoring viability to struggling businesses.
Business turnaround expert