The case study deals with the need for financial restructuring for projects when there is a wide deviation between what is planned and what actually turns out. Most of the projects have very promising business plan but when it comes to execution stage things may not go as per the initial business plan. There comes the need for restructuring of financing plans and also revising business plans. This may be a very difficult situation for projects. Different stake holders, particularly shareholders and lenders, during this stage will be very anxious and impatient. They will be reluctant to re-negotiate further. This will be a tricky situation where formulating a win-win strategy for lenders and shareholders will be very crucial for the sustainability. The case has been disguised to protect the interests of stakeholders. This case is solely prepared for class room discussion.
Keywords
Business Plan, Cash Flow, Debt Servicing, Financial Restructuring, Profit After Tax (PAT), Profit Before Tax (PBT).
User
Font Size
Information