KPMG has significant experience of debt restructuring engagements in Ukraine today. We provide financial advisory services for many of the major debt restructuring projects in Ukraine, involving billions of dollars’ worth of debt, and also work on smaller projects.
We have deep knowledge of the specific aspects of working with major international and Ukrainian banks, including state banks, and we understand their requirements and expectations in the restructuring process.
Our restructuring services
Operational restructuring
It is often the case that operational restructuring programs triggered by financial distress are not planned thoroughly enough or properly implemented, and as a result do not achieve the desired results.
We have operational restructuring specialists who can work as part of your team and help you to:
- find more opportunities for cash flow improvement
- convert a greater proportion of opportunities into real savings
- make it all happen more quickly
- avoid the mistakes we have seen made elsewhere
Restructuring is our day job, so we bring experience, share best practices from other companies, and provide a proven methodology that can be quickly tailored to match your situation. If you feel you may need our assistance, please contact us to discuss details of how we can help you.
Working capital management
- A lack of cash to finance CAPEX and service debt, with limited opportunities to raise additional external financing
- Excessive working capital
Your questions
- Is the current level of working capital optimal for your company?
- How does your company’s cash turnover compare to that of your competitors?
- Can cash be released from working capital to finance other expenditures without damage to the business?
How KPMG can help
Our experience shows that in many CIS companies working capital is not properly managed, is excessive and can be reduced with cash released back to the business. Size of such potential release is sometimes comparable to annual free cash flow.
We analyse the structure of and historical changes in each component of the company’s working capital.
We benchmark your working capital against your peers.
We use the results of this analysis and our review of the working capital management processes to determine the realistic potential for reducing working capital and releasing cash, and draw up a detailed optimisation plan.
Cash management
What’s on your mind?
- A lack of cash to finance CAPEX and service debt, with limited opportunities to raise additional external financing
- A lack of a centralised approach to payments at the Group’s companies
Your questions
- Is the current level of cash optimal for the Group?
- Can cash be released from working capital to finance other expenditures without damage to the business?
- Does the cash management system fit the needs of the business?
How KPMG can help
We perform a comprehensive analysis of cash inflows and outflows for each of the Group’s companies. From this analysis, we determine the optimal cash balance for the Group and develop a unified payment management system aimed at minimising the cash balance.
We analyse the cash control procedures and provide suggestions on optimising the business processes and the cash management regulations.
We review the cash flow planning and reporting procedures.
Rapid increase in cash flows
What’s on your mind?
- You need to increase cash flows as quickly as possible to continue servicing a debt.
- You have debt servicing problems and need to strengthen relations with creditors.
Your questions
- Can the business’s income be increased quickly without major investment?
- Can expenditures be reduced quickly without damage to the business?
- Can idle/non-core assets be sold quickly?
- How far can working capital be reduced without damage to the business?Can external investors be attracted to the business?
How KPMG can help
We carry out a comprehensive, but quick, review of all aspects of your business, considering all the existing options for increasing liquidity. Such options usually fall into two categories: improving operating results (measures aimed at a one-time increase in income and reduction in costs) and increasing net cash flow (optimising working capital, selling non-core assets and attracting external investors).
We then use the analysis results to determine the realistic potential for increasing liquidity and develop a detailed plan of action.
