Vietnam Market Position
We are seeing Vietnam market current issues across businesses broadly include:
Facing such above challenges corporate might experience stress and distress positions with symptoms such as:
Liquidity challenge
Liquidity or cash flow shortfall, covenant non-compliance, inability to raise capital or new debts, failing to repay debts as scheduled, working capital limits (Stressed / Limited time available)
Profitability challenge
Declining earning trends, loss making (Progressing towards stressed)
Growth crisis
Disruption and decline in business, and company value decreasing (First signs of stress visible)
Recommended actions
1
Diagnose financial and liquidity position including understanding immediate cash commitment, short-term cash needs and future funding gap; the cost of the business moving ahead; and debt-capital structure to determine quantum of capital infusion needed besides additional debt that may be required.
2
Finalise restructuring plan with Financing Options after diagnostics / business review
3
Procure financing through best-fit financing structure (debt, quasi-debt, equity, equity linked etc.) tied to restructuring plan (Prioritize short-term liquidity through ST financing solutions first).
4
Implement restructuring and turnaround the business
How we can help
Proactively responding to these challenges is key. From cash flow forecasting to broadening refinancing options, a restructuring mindset can help your business identify vulnerabilities and plan for the challenges ahead.
Rapid Diagnostics to determine days of cash cover and quantum of funding needed
- Independent business review and Short-term cash flows forecast control.
- Assessment of debt-equity structure, debt capability and funding gap analysis.
- Restructuring options analysis and development of a restructuring plan.
Financing Options finalisation with a Restructuring Plan
Restructuring Plan
- During the financier search, install a Chief Restructuring Officer to ensure business sustenance.
- Determine a sustainable funding level.
- Rapid cost takeout initiatives.
- Internal cash release initiatives.
- Initiate the restructuring plan.
Financial Restructuring Options
- Potential Financing solutions applicable to the client (onshore and offshore debt, equity, quasi-equity, mezzanine financing, etc).
- Investor/Financier connect and financing options are finalised based on investor/financier interest.
Restructuring plan implementation
- Secure financing by leading the fundraising process.
- Implement restructuring and turnaround supported by a chief restructuring officer or restructuring committee, as needed.
Get in touch
Johnathan Ooi Siew Loke
Partner, Deals and Consulting Services Leader, PwC Vietnam
Tel: +84 28 3823 0796
Mohammad Mudasser
Director, Working Capital Management, PwC Vietnam
Tel: +84 28 3823 0796, Ext. 3322
Senior Manager, Financial Restructuring Services, PwC Vietnam
Tel: +84 28 3823 0796