Corporate Recovery and Insolvency terminology

Business Turnarounds and Informal Arrangements with Creditors

Turnaround procedures widespread as financial institutions often seek to assist companies in financial difficulties rather than allow those companies to enter into a formal insolvency procedure. Although turnarounds of businesses at the larger end of the spectrum, such as multinationals and blue chip companies, often receive press coverage, it is often successfully applied in the smaller business without any publicity. It will usually involve individual agreements being reached with specific key creditors whilst the business continues and deals with other creditors/suppliers in the normal way.