Rebound Plan

What measures to put in place to help your rebound?

As the evolution of the health crisis is currently uncertain, companies are now facing new challenges: how can they predict the recovery of activity without being able to anticipate the evolution of the health crisis? Indeed, preparing for the end of the crisis necessarily relies on forward-looking analyses of the business, whose recovery depends solely on health trends, unlike other past crises.

As a result, the challenge for companies is to anticipate their cash requirements as well as possible and to take advantage of existing measures and mechanisms to maintain a sufficient level of cash flow to avoid bankruptcy.

• Preservation of customer/supplier relations and financing of the activity
• The use of difficulties’ prevention proceedings

Preservation of customer/supplier relations and financing of the activity

As a result of the health crisis, most companies have experienced a partial or even total freeze on their activities. The survival of a business depends on good cash management. On the one hand, companies are suffering a loss of income, and on the other hand, they have to continue to meet their obligations and honour the payment of various charges, such as rent payments, repayment of bank instalments, payment of salaries, tax and social security taxes, etc.

In this context, government measures have been put in place to support companies’ cash flow, in particular:

• simplified and reinforced partial unemployment;
• solidarity Fund for very small companies;
• introduction of state-guaranteed loans for companies of all sizes;
• rescheduling of bank loans;
• suspension of commercial rent payments for very small companies;
• referral of the payment of social security charges, and even exemption from the payment of these charges for certain companies.

Our team assists companies that need to be able to pay back the rents, loans and contributions that have been suspended up to now, but also those to come, in order to forecast their cash flow in the short, medium and long term.

The challenge of the rebound is to ensure in this context the preservation of customer-supplier relations but also the financing of the activity.

Julie Cittadini

The use of difficulties’ prevention proceedings

The measures put in place by the government may seem insufficient for many companies in that they essentially suspend the payment of certain charges, rather than exempting them.

It may be necessary to resort to the tools for preventing difficulties, which have the advantage of offering companies the possibility of negotiating with their main partners and securing the necessary restructuring.

Amicable or insolvency proceedings have proved to be effective tools enabling the company to get out of its difficulties at the top.

Our team assists its clients in preventing difficulties, such as ad hoc mandates or conciliation, which make it possible to secure the necessary restructuring operations (spin-off) but also the consolidation operations to which companies must turn.

Julie Cittadini