Creditors

Defining the Objective

Turnford works with creditors and debtors to quantify the situation and develop options that improve recovery while mitigating risk. This approach has produced full recovery for the secured creditors in over 90% of Turnford's cases.

Finding a solution to a failing credit facility, held by a complexed operation, can be daunting.

The financial clarity and Information necessary to quantify the risk is seldom available and if it is, the planning verses operating history often adds a cloud to its credibility. Knowing when to act and developing a proactive creditor recovery plan, for an operating enterprise, can be a complicated and high-risk process. This can cause a reluctancy to act however the timing of creditor action is a key contributor to the level of recovery. Other considerations are:

i. Enterprise Value usually exceeds asset liquidation value. Turnford specializes in securing, developing, and realizing enterprise value. (See case history section for more information).

ii. In the majority of cases the root causes of an enterprises' poor performance are business related. As such business solutions are often the most effective. (See experience section for more information).

iii. Creditor "Clarity of Purpose" is critical. 

The last point may seem obvious however consider that holistic solutions require a single purpose or goal which is translated into operating tasks. Business operations are by nature dynamic; therefore, task management agility is essential. The purpose or goal however remains constant.

Success relies on an understanding of these two perspectives. The skill set necessary to operate a distressed asset, restructure, market and recover its potential value is significantly different from that necessary to manage a sustaining business and realize its earned value.

Operating a business towards liquidation drives different decisions. Human resource is a matter of the hand that is dealt, recruitment is rarely an option and realizing the potential, not earned value, is very different from main street M&A.

Creditor and receiver Clarity of Purpose is critical. If recovery is the goal or purpose, Industry specific experience is not a key contributor. Turnford's best in class record at creditor recovery across a diverse range of complex industries demonstrates the effectiveness of Turnford’s approach.