In parallel to its strategic planning services, AlShall advises on financial architecture and restructuring of troubled companies. With the aim of enhancing shareholder value, AlShall focuses on the client’s goals and provides advice on the optimal capital structure, executive management, shareholder mix, and targeted products and services. Finally, AlShall helps in implementing the restructuring plans (legal, financial or other requirements) and bridging any funding gaps.
In the event of stressed or distressed situations, AlShall assists its clients in:
- Being proactive, rather than reactive, by taking action in a voluntary restructuring plan to protect their debt exposures and minimize losses, and/or avoid reaching financial distress.
- Take action in restructuring troubled-debt obligations – whether out-of-court or in-court under the Kuwait Financial Stability Law, with the primary aim of minimizing and halting further losses, avoid bankruptcy, and operate on a going-concern.
AlShall assists in restructuring contractual debt obligations through refocusing the corporate strategy of firms/companies and streamlining their operations with the underlying premise of mainly:
- restructure the balance sheet through resizing the firm’s assets or investments portfolio, changing its capital structure, and/or ownership/control, to ensure that:
i) debt servicing and repayments are met based on a Corporate Debt Restructuring (CDR) plan which takes into account the firm’s cash flow generation ability,
ii) all involved stakeholders (banks, other creditors, shareholders, investors, potential management) are treated fairly,
iii) overall liquidity is enhanced,
iv) profitability and sustainable growth are restored, and
v) as an ultimate objective, shareholders’ wealth is preserved and maximized.
- Extend support in implementation of the financial restructuring plan.