As defined in our previous articles, a distressed company is a company facing financial and/or operational stress. The stress manifests itself in the form of; delayed payments to suppliers, delayed remittance of taxes, delayed servicing of debt, delayed disbursement of salaries and the erosion of asset quality owing to reduced re-investments.
We have, via previous articles, detailed the early warnings signs of distress, business turnaround strategies and debt restructuring options. Financing a distressed company touches on all the key strategies outlined earlier, the most important of all being objectively assessing the viability of the business as a going concern.
