Business Recovery Services (BRS)
Rapid market changes, a tough market competition, disruptive technologies, strategic errors – any or all of these can bring a company into serious financial distress. Companies sometime exhibit symptoms of distress well before a crisis erupts. Early detection and swift, decision action are keys to restoring performance and value. That is why timely and expert advice is critical.
BRS division is part of the larger Advisory Group of PwC global network. The division brings together professionals from a wide range of consulting and business backgrounds to provide integrated corporate recovery and insolvency related services.
We combine the local knowledge and expertise of our Indonesia team with the skills and contacts of our worldwide network to provide our clients with a wide range of services. From restructuring and business regeneration to finance raising and M&A, independent monitoring and optimized exit, our aim is to help debtors and/or their lenders resolve and recreate value through the implementation of effective restructuring and/or asset sale programmes.
Services to companies experiencing financial difficulties
If this is your situation:
- Declining earnings
- Poor liquidity/ cash flow problem
- Excessive debt/ over leveraged
- In breach of covenants/ potentially breaching covenants
- Credit rating downgrade
- Debt trading at “distressed” levels
- Your corporate structure is not aligned with your strategy and business objectives
We provide services to assist companies in resolving financial and strategic issues and help to improve businesses that are performing at below optimum levels. We assist troubled companies in:
- Business assessment
- Performance benchmarking
- Business regeneration
- Corporate restructuring
- Debt restructuring
- Finance raising
- Asset (including equity shares and/or business division) disposal
We also have considerable experience in assisting troubled companies dealing with their lenders and in coordinating and negotiating on their behalf with bank groups. We provide complete financial advisory services in relation to a debt restructuring process, including:
Services to financial creditors to troubled companies
- Leading the restructuring process and coordinating the work of all professionals involved
- Advising on the appropriate restructuring plan, with the objective of negotiating continued support from the lenders
- Facilitate discussions and negotiations between companies and their lenders
- Raising new financing for the companies
- Finding potential investor(s) for equity shares or assets of the companies
- Advising and assisting in any dealing with relevant regulatory bodies such as Bapepam and the Jakarta Stock Exchange
We provide banks, bondholders, and other financial creditors a wide range of services in relation to their under/ non performing loans/ bonds and we have long standing experience in assisting lenders on this area.
We provide value added advice to lenders in managing their risk by:
- Facilitating a better understanding of borrower’s business through assessment/ review on their current and prospective financial performance and position and also their corresponding risk and opportunities
- By providing lenders with a better understanding of the borrowers’ business, we aim to identify and recommend alternative solutions in order to optimize lenders’ recovery
To provide lenders with the above, we are often required to perform the followings, on behalf of the lenders:
Non-performing loan advisory services
- Business and financial reviews
- Financial projections reviews
- Developing business turn around plans
- Developing debt restructuring plans
- Monitoring borrowers business and financial performance post restructuring
- Managing and disposing non performing loan/ bond portfolios
PwC has a global reputation in providing advices to financial institutions in buying and selling NPl portfolios. We have professionals experienced in delivering a complete range of NPL related services. In addition, PwC firms has a dedicated international NPL advisory group that can act as an overall co-ordinator for worldwide NPL mandates.
We provide the following services to financial institutions in relation to NPL:
Sell side advisory
- Sell side advisory
- Buy side advisory
- Post deal services
- Institutional advisory
- Sale preparation: portfolio review, classification, stratification and valuation; pooling & packaging sub-portfolios to maximise value; advising on appropriate form of investor review files; advising on marketing/disposal strategies; prepare Confidential Information Memorandum (CIM); 3rd party service provider co-ordination/management.
- Investor sourcing: identifying potential investors for bilateral deals of public tender; targeting specialist investors for specific sub portfolios/ tranches.
- Sale execution: Management of the entire portfolio sale process; transaction structuring; designing appropriate bidding/sales procedures; overseeing investor contact (investor invitation, qualification); evaluation of investment proposals; negotiate detailed terms; coordinating legal/other advisers.
Buy side advisory
Advising on appropriate deal structures; advising on accounting/tax implications of proposed structures; advising on Government approval process; assisting in the deal completion process; identifying potential portfolio investment opportunities; due diligence and negotiation support: portfolio review and valuation; identification/evaluation of exit options (both for the portfolio and individual loans).
Post deal services
Portfolio strategy advice and implementation; managing the loan collection process; advising on loan servicing set-up issues; advising on issues that impact collection process.
Advising on asset management company (AMC) establishment and operation.
PwC Indonesia’s team of professionals assists multinationals who have decided to exit a business in Indonesia. We help our clients to exit in the most optimum way and provide a wide range of services including:
- Analysis of options
- Project management
- Equity shares disposal
- Disposal of on-going parts of the business
- Disposal of property and other assets
- Liquidation of the corporate entity
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