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TROUBLED COMPANIES
Generally, when a company becomes troubled, there isn't one single thing to point at as the cause.
Instead, most times, several things have occurred, some related-some not, to cause the situation and
as a result, it takes several corrective acts to resolve the problem.
These companies are referred to as Turnarounds, and their bankers call them 'troubled loans'. Many
Institutions have separate departments devoted to 'troubled loans' and spend an immense amount of time
trying to bring the company around.
Early in 1982, RCPAG Financial Group began performing Turnarounds, out of necessity, for some of it's
clients who owed the firm money, but couldn't pay and had very little promise of ever being able to pay.
What began as a defense measure to avoid writing off client accounts, became a sought-after service
by other troubled companies and/or their bankers and leasing companies.
A typical senerio: XYZ Manufacturing Company, Inc. has become delinquent in paying their payroll
taxes withheld from employees to both Federal and State agencies. They are also behind in their loan
payments and their equipment leases are delinquent as well. All of the company's suppliers have gone
to C.O.D. terms on materials and supplies and the owners have not been able to take a paycheck for
several weeks.
Given this situation, how do we resolve the problems, restructure liabilities and bring back this one-time
viable manufacturer and employer of people to it's prior good status?
The absolute first step is for the owner/operator(s) to admit that there is a problem that needs fixing.
The second step is to admit that the owner/operator(s) need help fixing it.
These two admissions are extremely difficult since the owner/operator(s) see this as a personal failure.
Many times, however, that simply isn't true. The owner/operator(s) may have been placed in a situation
which is new and outside their expertise. They may have made a bad decision, and regrettably, did not
know how to correct the problem. A lack of expertise is not a personal failure. It is simply a lack of
expertise…nothing more.
So, how do things get turned around?
Contact us today. Direct your inquiry to Don Richards, personally and
we will discuss the situation and determine what can be done and how fast.
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