Recovery plan under administration

CONTEXT

• The Company, a €100m French subsidiary of a Dutch publicly quoted group, is entering recovery proceedings (“redressement judiciaire”)
• The cash crisis is due to governance reasons (management & shareholders misaligned) and to a mismanaged recent merger integration

OBJECTIVES

• To ensure the survival of the business, and to use the proceedings to speed up restructuring and the post merger integration

TASKS

• Immediate and complete turn-around of top management. NewBridge provides 4 interim Directors (COO, Finance, Controlling, Purchasing)
• Design of a recovery plan including the full merger of two brands in 3 weeks, accepted by all parties
• Complete industrial restructuring and the employment plan (120 people out of 350)
• Securing of relationships with the main customers and suppliers

OUTCOME

• Eliminated the risk of liquidation, and fully restructured the company within 5 months
• Financial equilibrium reached 4 months after the start of the “continuity plan”