Independent Business Review

When a banker grants a company a loan, he wants to make sure it is able to reimburse the principal and pay the interest.

However, the corporation needs to balance all the stakeholders' interests (those of the banks, shareholders, employees, suppliers, and so on) in what are increasingly difficult and unpredictable times.

The speed at which the financial crisis has impacted the real economy is unprecedented. The measures needed to mitigate the impact of the crisis - in so far as that is possible - have to be thorough. But, as visibility into the future is somewhat opaque, the question arises whether the measures taken will deliver their expected results.

The Independent Business Review provides you with fresh insight into the new business plan (and its achievability) as prepared by management, including action to remedy the crisis, and tests the new forecast cash flows against old and any new debt covenants.

If this is your situation

• Some of the corporate loans granted by you may turn out to be non-performing.
• The covenants under certain loans risk being breached.
• You are uncertain about the magnitude of the impact of the crisis on the business of your company.
• Have the remedial actions been translated into a new business plan and has this plan been tested for covenant breaches?
• Is current management addressing the issues correctly and is it addressing the right issues?

How PwC can help you:

• Your organisation can leverage on fresh insight provided by our Independent Business Review.
• Understand why business plans have historically not been met.
• Evaluate the strategy of management under the current economic circumstances.
• Assess the impact of managerial action to remedy the current market downturn.
• Provide comfort on the achievability of the new business plan.
• Outline a number of options to safeguard stakeholders' interests.