We are all witnessing severe disruption or even suspension of public services, education and businesses as well as significant turmoil in global financial and commodity markets due to the current pandemic. Lenders and investors are increasingly raising concerns about the ability of companies to manage liquidity and avoid defaults under loan documentation.

Each borrower will need to assess how the COVID-19 outbreak will impact its own finances in the short, medium and potentially long term. Most governments have been swift to react with fiscal relief packages, support to employees, and programmes for state guaranteed credit enhancement. Borrowers need to quickly develop an understanding of how governments, investment agencies and banks may help them to navigate through this storm.

Clairfield Capital Solutions provides support on:

• mapping your liquidity needs and exposures under the loan documents.
• conducting relevant financial (scenario) analyses and building of financial models to structure solutions.
• negotiation and documentation.
• preparing the necessary documentation to obtain support from governments and agencies.
• setting up operational cash management (debtor and creditor control) and assistance in forced sales of pledged assets.

In the longer term, regular M&A considerations can become or remain part of your strategic plans. We provide buy side advice, performing international searches through our local Clairfield partners, providing local opportunities. Our partners in other continents are showing different momentum in the corona crisis, implying different economic cycles in coming months and therefore opportunities in other continents.

Click here to read more about how Clairfield’s Capital Solutions practice can support your company through this unprecedented time: Clairfield Capital Solutions and COVID-19

Keep courage and stay healthy!