In the current market environment, companies are enduring challenges in meeting their debt obligations. A structured coordinated response is the best path to success in such conditions.

Factors impacting businesses in Bahrain

  • Economic downturn and COVID-19 has impacted most of the key business segments adversely and exacerbated the already existing stress in the economy.
  • Typical business models were largely trade finance dependent or working capital intensive.
  • As businesses face challenges in recovering outstanding receivables in a timely manner, the working capital positions are being stretched.
  • This is coupled with declining revenues, margin erosion and a fundamental change in consumer behavior.

These factors are leading to:

  • Stressed balance sheets
  • Unproductive assets
  • Long working capital cycles
  • Default in debt payments
  • Delay in payments (both operational and financing)
  • Cash flow issues

Organizations that do not face these challenges head on, understand the options and manage critical stakeholders, run the risk of financial impairment and potential business failure.



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