Restructuring of a distressed subsidiary’s operations

CONTEXT

• Client is a €140m IT services company faced with a post-merger ‘serious disappointment’ . Recent acquisition is a diversification away from core business, with sales of €140m
• Sudden cash crisis due to a misreading of the financial and operational implications

OBJECTIVES

• To secure investment, reassure creditors, and obtain additional payment delays

TASKS

• Team downsizing through an employment plan
• Opening of a customer service center outside France
• Decrease in collection delays, cancellation of unprofitable contracts
• Listed company: negotiation with stock market authorities (AMF)

OUTCOME

• Creditors agreements on rescheduling, as the plan was actual and implemented
• The group was back to regular operations and profitability within 2 semesters
• A new permanent team was set up