As much as a troubled borrower and its lender might like to part ways, finding a new lender to take out the existing lender at par may be a difficult objective to accomplish. . . . Finding a way to successfully navigate these long-term workout situations could represent the difference between a costly write-off for the lender and a successful loan restructure with a rehabilitated borrower. Turnaround professionals are able to assist in these long-term workout situations by serving as a bridge between the two parties.
Recommending a liquidation can be among the most painful decisions a turnaround professional is forced to make, but it can also be among the most impactful in terms of preserving value. With preparation and a detailed plan, a liquidation can be carried out in an orderly manner that will maximize financial recovery and minimize disruptions to all parties involved.