Chief Restructuring Officer
When a business is in turmoil and the CEO is fully engulfed addressing the day-to-day problems, the best solution is often the hiring of a Chief Restructuring Officer (CRO). The value of a CRO is the ability to help quickly stabilize a business, build creditor confidence, assist with debt restructuring and increase stakeholder value. The CRO provides a vital role for five major reasons:
The CRO's key responsibility is to ensure the restructuring process moves forward in a coordinated way and incorporates a plan that is scalable for growth when the situation improves.
The CRO focuses on:
- Creating a viable business plan
- Leading forbearance and restructuring arrangements
- Negotiating with trade creditors
- Advising on asset sales or equity transactions
- Driving profit and cash improvement projects
- Leading unsecured creditors negotiations
- Locating outside sources of capital
- Ensuring sufficient cash flow
- Negotiating out-of-court settlements or leading the Chapter 11 process
One of the many truths we've learned over the last several decades is the importance of the CRO/CEO partnership. The best partnerships are characterized by mutual respect, honesty, frequent communication, and a mindset where the best ideas are supported by facts and reason.