Lenders often need a way out. The deal may simply no longer fit their lending criteria; the risks may be too high, forcing the lender to accrue a loan loss reserve; or, the borrower's capital structure may have changed so dramatically that the lender can no longer keep the loan in its portfolio.

Key Suppliers may be unwilling to continue to provide the critical supply-line to the enterprise, while watching their exposure grow in both risk and size.

Investors may have no appetite or ability to underwrite additional investment at a time when the enterprise needs stronger capitalization. The deal may no longer fit current investors' criteria or the return may simply not be in sight.

Management may desire that all hold still, but the reality may be that the lenders, key suppliers and investors won't. What then is the solution?

Solutions? Sometimes the only viable solutions for dealing with the sorts of lender, key supplier and investor 'fatigue' outlined above, are to provide a ways out for the affected stakeholders. The Bel├ęt Group understands the delicate nature of each of these relationships. Our team is adept at working to replace existing lenders, finding solutions to keep critical supply-lines open and striving to attract new investment or arrange for a sale of the enterprise, if these are the right answers called for by the situation.

The guidepost is to find the best solution to preserve the value of the estate and maximize recovery for each of the stakeholders, while striving to reposition and rebuild the enterprise for the future.

New ownership may fill a unique strategic void, repositioning the enterprise to 'leapfrog' to vast new opportunities far beyond its present reach. This may yield the best outcome for all the stakeholders and allow the business to truly flourish at an entirely new level.

~ When written in Chinese the word "crisis" is composed of two characters
one represents danger and the other represents opportunity. ~
John F. Kennedy

 
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