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Independent business review - Creditor advisory

Achieving your financial objectives amidst the crisis

The Bayanihan to Heal as One Act (Republic Act No. 11469) and the corresponding implementing rules and regulations issued by the Department of Finance mandated a 30-day grace period for loan amortizations falling within the enhanced community quarantine period. 

This grace period covers lenders under supervision by the Bangko Sentral ng Pilipinas and other government agencies, including but not limited to banks, quasi-banks, non-stock savings and loan associations, credit card issuers, and pawnshops.

We are operating in a challenging business environment. The enhanced community quarantine is causing significant disruptions to business operations and have financial implications. 

To help you navigate through this tough condition and minimize the impact to your cash flow, we can work with you through:

  • assisting you via independent review of borrower’s historical financial performance and position

  • helping you understand your borrowers’ forecasts, analyzing unexpected variances and changes, and assessing its impact on the ability of a borrower to meet funding requirements or continue as a going concern

  • assessing loan recoverability through review of borrowers’ capacity to pay

  • identifying various options for you and the borrower

  • advising your management in drafting the financial definitions to be included in new or amended credit agreements

Signs to look for

  • Is your borrower just experiencing short term liquidity issues or longer term business viability problems?
  • Is your borrower underperforming during the crisis?

  • Is your borrower manifesting signs of being unable to meet its payment obligations, even after the mandated grace period?

  • Is your borrower facing cash flow pressure and at risk of breaching loan covenants?

  • Is your borrower looking to simplify financing arrangements?

  • Is your borrower experiencing difficulty in obtaining new facilities or agreeing extensions?

Contact us

Mary Jade T.  Roxas-Divinagracia, CFA, CVA

Mary Jade T. Roxas-Divinagracia, CFA, CVA

Deals and Corporate Finance Managing Partner, PwC Philippines

Tel: +63 (2) 8845 2728

Janesse C. Galicia-Dorado

Janesse C. Galicia-Dorado

Deals and Corporate Finance Director, PwC Philippines

Tel: +63 (2) 8845 2728

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