Chief Restructuring Officer/CRO
For successful restructuring, the right management personnel in the company is fundamentally important. The causes of the crisis must be diagnosed impartially under high time pressure and with high pressure to succeed. Suitable restructuring measures must be developed and then implemented. At the same time, market partners and financial partners must be motivated to provide support. Last but not least, it is important to create a new spirit of optimism among the employees and to put an end to the paralysis and apathy caused by the crisis. Tendencies to leave the company must also be avoided or counteracted.
The existing top management is generally suitable for management in "normal" business situations and has the appropriate experience. However, they do not usually have any restructuring experience or specific restructuring knowledge. The special features of crisis situations are therefore not known to the management and in addition pose a danger to the company and the management (e.g. liability risks related to insolvency).
As experienced restructuring managers (CROs), we are specialists who combine both management and restructuring expertise in one person. Restrukturierungspartner master the entire range of corporate restructuring instruments and act as restructuring managers, if required, with hard, rapid cuts to ensure the survival of the company.
What are the benefits of a CRO?
Appointing a restructuring manager director offers the company and creditors the following benefits:
- The CRO has an unencumbered approach to existing conflicts and restructuring obstacles
- Unpopular decisions can be made more easily due to a lack of emotional attachment to the company and greater sense of purpose
- A crisis-experienced expert with extensive restructuring and reorganization know-how is the contact person for employees and stakeholders
- A fast and smooth transfer of the complete management responsibility back to the old company management after successful restructuring, in accordance with the time limit of the mandate
- Conscious assumption by the restructuring manager of the managing director’s constantly increased liability risk in a corporate crisis as a sign of commitment to the restructuring process
- Restoration of lost trust through neutrality of the restructuring manager or CRO vis-à-vis important stakeholders such as credit institutions
Supporting the management during self-administration or a protective shield procedure to ensure that no insolvency law errors occur in the self-administration.
How can Restrukturierungspartner help companies?
Restrukturierungspartner support companies in times of crisis by:
- Our managing directors or managers assuming and conducting the administrative CRO function (a restructuring management, a restructuring executive committee) - also in self-administration or in the protection shield procedure
- Initiation of concrete measures to stabilize business operations and defuse the current corporate crisis
- Negotiations with customers and suppliers (e.g. inventory optimization and receivables management)
- Negotiations to improve the capital structure
- Analysis of the causes of the crisis, development and evaluation of options for action and implementation of defined restructuring measures
- Implementation of liquidity planning to create transparency
- Initiation of measures to permanently ensure sufficient liquid funds to cover financing requirements
- Reporting to external interest groups, e.g. regular restructuring reports to build trust and create an appropriate information situation.