Corporate Recovery & Restructuring
Corporate Recovery & Restructuring
Ferrier Hodgson MH can act as receivers when appointed by a lender with a secured interest in a corporate business. Generally, our appointment occurs when the secured creditor wishes to enforce its security in order to recover its debt.
Ferrier Hodgson MH is the corporate recovery, restructuring and insolvency arm of Baker Tilly Monteiro Heng. Ferrier Hodgson is the most widely recognised and highly respected provider of Forensics and Investigation services in the Asia Pacific region. Clients choose Ferrier Hodgson MH to assist them in solving complex problems threatening their value. Services include operational restructuring, strategic cash generation, cash management, impaired loan advisory, turnaround planning, corporate financial restructuring and lender advisory.
Our strength is our people. We identify, attract and retain some of the best people in the industry, offering our clients exceptional skills and experience across a range of industries. This enables us to handpick and tailor an expert team to meet unique challenges. These expert teams are led by a hands-on principal who is involved in every stage of the project, from setting the strategy to ensuring quality results.
Ferrier Hodgson MH has extensive resources throughout Asia Pacific and our partnerships with leading firms in the United States and Europe allows us to combine global expertise with local knowledge. Ferrier Hodgson’s offices in Indonesia, Japan, Hong Kong, Philippines, Singapore, Australia and New Zealand enable us to combine our own experts with specialist industry and company experts from within the region.
Ferrier Hodgson MH has significant resources that can be seamlessly deployed locally and internationally to:
- Identify the financial issues and strategic objectives of a client
- Build confidence between stakeholders
- Recognise mutual concerns
- Provide assurance in the process
- Effectively implement an agreed strategy
A commitment to be the best in Restructure and Turnaround services means our clients receive the professional service and leadership crucial to achieving optimum financial outcomes.
Once appointed as Receivers, our primary responsibility is to ensure our appointer is repaid. Sometimes, this may involve a recapitalisation or sale of the business. We can also act as Receivers even when the company in question is under liquidation.
Members’ Voluntary Liquidation
If a company is solvent and wishes to wind up its affairs, the directors must file a certificate of solvency and then pass a special resolution of its members.
Creditors’ Voluntary Liquidation
If a company is insolvent and wishes to wind up its affairs, it may do so by passing a special resolution of its members after which creditors must meet immediately afterwards.
This may occur following an application to the court (generally by a creditor of the company on the grounds of insolvency). The appointment of a liquidator to a company in liquidation is generally made at the first meeting of creditors.
Ferrier Hodgson MH is a registered liquidator in Malaysia.
On the presentation of a winding-up petition against a company, the court may appoint a provisional liquidator if an application is made and the court thinks it is justified prior to the date of the winding-up order. Generally, an application for the appointment of a provisional liquidator to a company is made on the ground to prevent the assets of the company being dissipated. The courts have also tended to favour the appointment of provisional liquidators as a means for corporate rescue and restructuring.
A provisional liquidator’s primary duty is to preserve the existing status quo and assets of the company. We can act in any form of liquidation, but will always strive for the best outcome for all stakeholders.
Schemes of Arrangement
Section 176 of the Companies Act 1963 provides a company with the power to compromise or come to an arrangement with its creditors and members. Court approved schemes of arrangement provide a mechanism whereby a company is able to bind its creditors to an arrangement which would otherwise require each and every person consenting to be bound by the scheme.
We can act as special administrators when appointed by Danaharta, the National Asset Management Company with a secured interest in a corporate business.
Once appointed as special administrators, we assume temporary control and management of the assets and affairs of the company and prepare a workout scheme aimed at maximising the recovery value of the business.
Financial Monitoring/Special Accountant
Identifying the early signs of a potential insolvency of borrowers (the ability to meet debts as and when they fall due) is imperative for lenders. Monitoring is a means to identify and recognise the financial difficulty of borrowers.
Ferrier Hodgson MH provides services to lenders to help monitor the financial performance of their borrowers and also advice to lenders to formulate recovery strategies if there is any indication of insolvency by their borrowers.
Restructuring and Turnaround
With many troubled companies, creditors recognise their recoveries can be significantly improved if the organisation is restructured rather than liquidated. With an unmatched depth of experience, Ferrier Hodgson MH offers an integrated range of services to help clients analyse, restructure and turnaround businesses that face financial difficulties.
We are committed to giving the best advice and making the right calls. At Ferrier Hodgson MH we are hands on and become actively involved in the cost efficient and effective implementation of what can sometimes be tough recommendations.
The confidence of lenders and banking syndicates to appoint Ferrier Hodgson MH as restructure and turnaround advisers is because we:
- Genuinely understand the operations of businesses with which we work
- Combine that knowledge with our experience in the management of cash-flows, debt and financial risk
- Implement strategies to achieve desired financial outcomes
- Maintain reporting processes that keep stakeholders informed every step of the way
When conducting restructure and turnaround assignments, we adopt a parallel process across two phases, as follows:
Our approach to restructuring and turnaround assignments is designed to balance our understanding of the needs of the stakeholders.
Phase I includes the following:
- Assist with the negotiation and implementation of an initial standstill to allow stakeholders time, or “breathing space”, to review business options and develop strategies
- Develop and review financial statements and financial models that will form the basis for the negotiation of the restructure as required
- Analyse and assess the debtor company’s business strategy and the industry in which it operates so we can develop an understanding of the key business drivers
- Assess commercial pressure points for constructive use in negotiations
- Develop fallback scenarios.
Phase II includes the following:
- Determine the form of debt and equity structures that meet the requirements of stakeholders
- Assist in negotiations with stakeholders for the agreed long term debt and equity structure given that they may have very different interests in the future of the business
- Implement alternative, innovative solutions which deliver value to the stakeholders
We get results. Our clients include major financial institutions, law firms, government agencies and both listed and non-listed corporations. Wherever we act, we are known and respected for our pragmatic, commercially-driven approach to maximising stakeholder returns.
Independent and Innovative
Professional independence is Ferrier Hodgson MH’s hallmark. We are, and are recognised as being, completely independent, a critical ingredient in all aspects of our work. We do not provide traditional auditing, taxation or legal services. The firm does not invest in any of the deals in which it is involved, thereby preserving our integrity when serving clients.
Our complete independence means clients can be assured that the advice we give them and the actions we undertake on their behalf represent our experienced professional opinion based entirely on the task at hand.
Our boutique, independent status enables us to combine the best of a small firm’s focus with the experience and sophistication of large firms. There are no compromises.
Innovation has long been our key to success. We are not conformist and readily adapt ourselves to suit the situation and meet the challenge at hand. As specialists, we bring well-practiced skills and unparalleled experience that are applied to a range of assignments to ensure fast and successful outcomes.
Having the most experienced people, whose expertise spans most industry sectors, enables us to deploy the right people to every assignment in order to create and implement a strategy that will achieve the best outcome for the client.
Our proven and unique style of doing business has been applied throughout Asia, where we are recognised as the best in our field. Part of that uniqueness is our ability to include industry experts in corporate restructuring and turnaround consulting assignments.
Ferrier Hodgson MH prides itself on the specialised nature of its practice. Since inception, our business has focused on the core activity of providing services in the area of corporate restructuring and insolvency, including turnaround consulting.