Blackstone provides the internal analysis and clarity that secured creditors need
to identify and address performance problems before they become insurmountable.
Our executives have the ability to quickly identify fundamental issues
that cause a business to underperform. Placed in these situations we can promptly
develop a course of action to address them.
This includes evaluating the viability of the company’s market position, the capability
and capacity of its operations, analyzing its debt and ability to service
or developing options for restructuring.
We can critically evaluate existing management, their capabilities, their plans,
and can recommend corrections as needed.
Should a company shows signs of failing to meet its obligations a Blackstone consultant
can be engaged to contain problems, manage cash flow and minimize further asset deterioration.
We understand the issues of risk ratings and loss reserves that face banking institutions.
We appreciate the basic underwriting standards that will be required by alternative lenders
and the need for risk reduction in properly structured and documented forbearance agreements.
We can help lenders ensure their own credit analysis is properly supported.
In challenged situations, inserting an experienced executive who understands
distressed business issues and the importance of clear strategy, fast action and
honest open communication can be extremely beneficial. This is especially true if done
when conditions first begin to deteriorate.
Secured creditors will become better informed and can work on productive strategies
while the existing management can focus its energies on advancing corrective activities
to reverse the direction of the organization in a more favorable direction.