Good companies find themselves in distressed situations for many unforeseen reasons:

• Missed bank covenants
• Customer, supplier or lender issues
• Insufficient liquidity
• Changes in management, the economy or technology
• International competition
• Acquisition gone bad
• Fraud, natural disaster or legal problems

These outside burdens can undermine the company’s relationship with its creditors just when it needs them the most.

When companies are proactive about their restructuring and advance a credible message, creditors respond positively.

Corporate leaders are not equipped to be turnaround experts, and may not be prepared to respond in the event of a financial downturn. Creditors see Management as too close to the situation.

Both corporate leaders and creditors need an advisor with a keen understanding of both sides of the restructuring event, and the credibility and experience to help the company re-establish its lending relationships and maintain its financial commitments.

The earlier the company retains UHY Advisors, the more likely a workable and consensual resolution can be reached. Early intervention by an external advisor can prevent a stressed company from becoming distressed – an important distinction in terms of preserving optionality.

Corporations and their creditors need UHY Advisors.