Key changes and actions to reduce and overcome the financial distress caused by the impact from the Covid-19 pandemic.
Key changes and actions to reduce and overcome the financial distress caused by the impact from the Covid-19 pandemic
The impact of COVID-19 outbreak is evident across all economic sectors in Bahrain and worldwide. In 2020, we witnessed what is considered to be the largest health and economic crisis in our modern age and many organizations have had to take extraordinary measures to comply with the governments’ precautionary measures to control the spread of the virus and to protect all their stakeholders alike. In most cases, this led to an adverse impact on most company’s operations, decline in revenues, profitability and accumulation of more debt on their books.
With the supply of vaccinations underway, 2021 is likely to be the year when the world gradually transitions towards a new norm. This also means that organizations will need to develop their future readiness to ensure that they can endure the impact from the COVID-19 pandemic over the medium to long term.
If you run a family business or market leader it's good to know about the potential impact the pandemic could have on profitability, conserve cash in the interim, monetize assets and the manner in which outstanding debt can be rescheduled / restructured.
It is inevitable that in current times, admitting a problem and trying to address it…goes in a long way than living in denial. Financial Restructuring provides a holistic solution for those set of companies who have multiple divisions, have large outstanding debt obligations to honor and are looking at ways to stay afloat and resilient.
Additionally with the various regulatory changes that have been introduced by the Ministry of Industry, Commerce and Tourism (MOICT) and the aim of financial restructuring, businesses need to ensure compliance with all the required changes to enhance their governance and streamline the restructuring objective.
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