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Ask IRA
We have developed Ask IRA as a self assessment tool that simplifies a very complicated area – defining the problem and the appropriate solution for a company in financial distress.
If it all sounds a bit hard just CALL US NOW for CONFIDENTIAL FREE ADVICE. But if you’d like to self-assess first read on.
IRA stands for “Interactive Restructuring Adviser”. IRA asks you four questions and based on your responses we can identify where your company is placed in the Restructuring Spectrum. So simply click on the relevant answers to the four questions then click “Send”. Scroll back to the bottom of the Questions and IRA will display on the screen three things:
- IRA’s assessment of where your company sits in the Restructuring Spectrum;
- The Solutions that are available to a company in that position;
- The Restructuring Work Services that assist with that solution.
If you think you got an answer wrong, simply “Refresh” the web page and you can start again. After that, if you have a look near the IRA icon at the bottom of the page you can Click and we will send to you by email a summary of the questions, your answers and our solutions.
If you’d like to discuss IRA’s suggested solutions please CALL US for FREE ADVICE.
| QUESTIONS | CONSIDERATIONS | ANSWERS |
|---|
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Restructurable)
SOLUTIONS: The corresponding solutions available to your company are:
- Formal Restructuring
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the unfortunate position of having a profitable company that is insolvent. Often this is caused by an unfortunate one-off event that has caused a loss to the company and threatens its future. Our Assessment is that your company is Insolvent (Restructurable).
Your company is ideally placed to be restructured! Insolvency laws are designed to be a “Rescue Regime” and assist companies such as yours. Because the restructuring will have to rely on the insolvency laws you will need external assistance. We suggest you start by having a look at our page on Voluntary Administration to learn about what may be required.
At Restructuring Works we offer two types of Formal Restructuring services that are relevant. The first is Voluntary Administration where we help you use the insolvency laws to protect your company while it restructures. Secondly, we may be able to fix your solvency problems with a quick Equity Raising.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Underperforming
SOLUTIONS: The corresponding solutions available to your company are:
- Informal Restructuring
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: Your company is solvent and profitable but has lost the support of at least one key stakeholder. This suggests a good underlying business but the loss of support of a key stakeholder is very serious. Our Assessment is that your company is “Underperforming”. It is imperative that the support of the key stakeholder be restored as a failure to do that will probably lead to the company being reclassified as in Financial Distress or even Insolvent.
The category of Solutions available to you is termed “Performance Improvement”. These are measures designed to help your company ride through the tough times caused as a result of the loss of support of a stakeholder. We suggest you start by taking a look at our page on Informal Restructuring to learn about what may be required.
Many solutions for Underperforming companies involve “Self Help” by the directors. So we suggest you start with our free Self Help Checklist. Sometimes an external party can act as a catalyst to effect necessary change. We also think you may need to consider an Equity Raising to help restore the confidence of the key stakeholders.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Restructurable)
SOLUTIONS: The corresponding solutions available to your company are:
- Formal Restructuring
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the position of having an insolvent company but one that is profitable. Often this is caused by an unfortunate one-off event or even by tough economic times that has caused a loss to the company and threatens its future. Due to the company’s insolvency you will have to act immediately. Our Assessment is that your company is Insolvent (Restructurable).
Your company is ideally placed to be restructured! Insolvency laws are designed to be a “Rescue Regime” and assist companies such as yours. The positive in your situation is that the company is profitable. However, because the restructuring will have to rely on the insolvency laws you will need external assistance.
We will have to work with you to aggressively address the problems caused by the insolvency of the company and the loss of support of the key stakeholder. We suggest you start by having a look at our page on Voluntary Restructuring to learn about what may be required.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Liquidate)
SOLUTIONS: The corresponding solutions available to your company are:
- Liquidation
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the position of having an insolvent company that is currently profitable but the outlook for next year is poor. Often this is caused by an unfortunate one-off event or even by tough economic times that has caused a loss to the company and threatens its future. Our Assessment is that your company is Insolvent (Liquidate). You should think about your answer to Questions 3 and 4 – is it possible that with some radical restructuring to the company that it can be returned to profitability and regain the support of key stakeholders next year? If so, redo the questions and your company could be reclassified and the business saved.
If you still believe that your company can not be made profitable next year then it will remain insolvent and so the only solution available to you is Liquidation. You should check out our page on Liquidation to see what is involved.
If that is the case, don’t just rush in and appoint any liquidator. Give one of our advisers a call as there are many matters you should consider in structuring your affairs and in appointing a liquidator. The service we offer in these circumstances is Managed Liquidation.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Financial Distress
SOLUTIONS: The corresponding solutions available to your company are:
- Informal Workout
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: Your answers indicate that you believe your company is currently solvent, however, it is currently running at a loss and even with some restructuring you expect to run at a loss next year. A company can not continue in that situation as it is imperative that a plan be developed that will allow the directors to conclude that the company will be returned to profitability in the reasonably immediate future. We classify the company as being in Financial Distress but it must also be looked at as borderline Insolvent.
The solutions available to a company in Financial Distress are broadly categorised as Informal Workout services. They will require a particular skill set as often quite significant change is required. Normally this will require external assistance to act as a catalyst for change. We suggest you start by having a look at our page on Informal Restructuring to learn about what may be required.
At Restructuring Works we provide two types of Informal Workout services. Firstly, Turnaround Management where we work with directors to identify the causes of the financial distress and develop a strategy to return the company to financial health. Secondly, Debt Refinancing where we review of a company’s debt finance to arrange a more appropriate type of finance or a rescheduling of the current terms. Because your company is borderline Insolvent we suggest you also consider an Equity Raising or Sale of Business.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Financial Distress
SOLUTIONS: The corresponding solutions available to your company are:
- Informal Workout
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: Your answers are a very unusual combination! You believe your company is solvent. However, where a company is currently making a loss, is expected to make a loss next year even if it is restructured and it has lost the support of key stakeholders, then it is exhibiting many signs of insolvency. We think you you should reconsider your answers and in particular check our page Is my company insolvent? Assuming you believe your answers to be correct, we classify the company as being in Financial Distress but it must also be looked at as borderline Insolvent.
Assuming you are right with your answers, then your company is in a very unusual situation and is likely to be poised between solvency and insolvency. The solutions available to a company in Financial Distress are broadly categorised as Informal Workout services. They will require a particular skill set as often quite significant change is required. Normally this will require external assistance to act as a catalyst for change. We suggest you start by having a look at our page on Informal Restructuring to learn about what may be required.
If you are unsure where your company is placed in the Restructuring Spectrum why not give one of our advisers a call on 1300 166 765 and work through your circumstances. If you want to learn more online, try the pages on Turnaround Management and Debt Refinancing. Turnaround Management is where we work with directors to identify the causes of the financial distress and develop a strategy to return the company to financial health. Debt Refinancing is where we review of a company’s debt finance to arrange a more appropriate type of finance or a rescheduling of the current terms.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Restructurable)
SOLUTIONS: The corresponding solutions available to your company are:
- Formal Restructuring
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the position of having an insolvent company that is currently profitable but the outlook for next year is poor. Often this is caused by an unfortunate one-off event but most commonly by expected tough economic times. Our Assessment is that your company is Insolvent (Restructurable).
Your company is ideally placed to be restructured! Insolvency laws are designed to be a “Rescue Regime” and assist companies such as yours. Because the restructuring will have to rely on the insolvency laws you will need external assistance. Of concern is your view that next year you will not be able to operate at a profit. This means that we will have to work with you to aggressively address the problems looming for next year.
We suggest you start by having a look at our page on site Restructuring Works. At Restructuring Works we offer two types of Formal Restructuring services that are relevant. The first is Voluntary Administration where we help you use the insolvency laws to protect your company while it restructures. Secondly, we may be able to fix your solvency problems with a quick Equity Raising or Sale of Business.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Restructurable)
SOLUTIONS: The corresponding solutions available to your company are:
- Formal Restructuring
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the position of having an unprofitable company but believe that with some restructuring it can be restored to profitability and solvency next year. Often this is caused by an unfortunate one-off event or even by tough economic times that has caused a loss to the company and threatens its future. Our Assessment is that your company is Insolvent (Restructure).
Your company is ideally placed to be restructured! Insolvency laws are designed to be a “Rescue Regime” and assist companies such as yours. Because the restructuring will have to rely on the insolvency laws you will need external assistance. We suggest you start by having a look at our page on Voluntary Administration to learn about what may be required.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Liquidate)
SOLUTIONS: The corresponding solutions available to your company are:
- Formal Restructuring
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the position of having an unprofitable and insolvent company. Our Assessment is that your company is Insolvent (Liquidate). You should think about your answer to Question 3 – is it possible that with some radical restructuring to the company that it can be returned to profitability next year? If so, redo the questions and your company could be reclassified and the business saved.
If you still believe that your company can not be made profitable next year then it will remain insolvent and so the only solution available to you is Liquidation. You should check out our page on Liquidation to see what is involved.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Underperforming
SOLUTIONS: The corresponding solutions available to your company are:
- Performance Improvement
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: Your answers are a little unusual in that your company is solvent, currently profitable and has the support of key stakeholders, but is likely to make a loss next year. This suggests a good underlying business but you expect tough times next year. Hence, our Assessment is that your company is “Underperforming” which simply means it is not expected to perform at a reasonable standard. There are a range of reasons why and a range of solutions available. Importantly, be aware that inaction will probably lead to the company moving to the right in The Restructuring Spectrum to be reclassified as in Financial Distress or even Insolvent.
The category of Solutions available to you is termed “Performance Improvement”. These are measures designed to help your company ride through the tough times. We suggest you start by taking a look at our sister website Restructuring Works, in particular review our section Informal Restructuring to learn about what may be required.
Many solutions for Underperforming companies involve “Self Help” by the directors. So we suggest you start with our free Self Help Checklist.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Financial Distress
SOLUTIONS: The corresponding solutions available to your company are:
- Informal Workout
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: Your answers indicate that your company is currently solvent, is running at a loss but you believe that with some restructuring of operations or debt then profitability can be restored next year. A company in this position is classified as in Financial Distress. Almost certainly, inaction will lead to a deterioration of the company’s financial position and lead to its insolvency.
The solutions available to a company in Financial Distress are broadly categorised as Informal Workout services. They will require a particular skill set as often quite significant change is required. Normally this will require external assistance to act as a catalyst for change. We suggest you start by having a look at our sister website Restructuring Works, in particular the section on Informal Restructuring to learn about what may be required.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Underperforming
SOLUTIONS: The corresponding solutions available to your company are:
- Performance Improvement
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: Your company is solvent and currently profitable but is likely to make a loss next year and has lost the support of at least one key stakeholder. This suggests a good underlying business but you expect tough times next year. Hence, our Assessment is that your company is “Underperforming” which simply means it is not expected to perform at a reasonable standard.
There are a range of reasons why and a range of solutions available. Importantly, we are very concerned that your company has lost the support of al least one key stakeholder. If that situation continues it will probably lead to the company being reclassified as in Financial Distress or even Insolvent.
The category of Solutions available to you is termed “Performance Improvement”. These are measures designed to help your company ride through the tough times. We suggest you start by taking a look at our page on Informal Restructuring to learn about what may be required.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Underperforming
SOLUTIONS: The corresponding solutions available to your company are:
- Performance Improvement
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: Your company is solvent and currently profitable but is likely to make a loss next year and has lost the support of at least one key stakeholder. This suggests a good underlying business but you expect tough times next year. Hence, our Assessment is that your company is “Underperforming” which simply means it is not expected to perform at a reasonable standard.
There are a range of reasons why and a range of solutions available. Importantly, we are very concerned that your company has lost the support of al least one key stakeholder. If that situation continues it will probably lead to the company being reclassified as in Financial Distress or even Insolvent.
The category of Solutions available to you is termed “Performance Improvement”. These are measures designed to help your company ride through the tough times. We suggest you start by taking a look at our page on Informal Restructuring to learn about what may be required.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Restructable)
SOLUTIONS: The corresponding solutions available to your company are:
- Formal Restructuring
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the position of having an insolvent company but one that you believe can be returned to profitability next year. Often this is caused by an unfortunate one-off event or even by tough economic times causing a loss to the company and threatening its future. Due to the company’s insolvency you will have to act immediately. Our Assessment is that your company is Insolvent (Restructurable).
Your company is ideally placed to be restructured! Insolvency laws are designed to be a “Rescue Regime” and assist companies such as yours. The positive in your situation is that the company can be returned to profitability. However, because the restructuring will have to rely on the insolvency laws you will need external assistance.
We will have to work with you to aggressively address the problems caused by the insolvency of the company and the loss of support of the key stakeholder. We suggest you start by having a look at our page on Voluntary Restructuring to learn about what may be required.
ASSESSMENT: Your answers lead IRA to believe that your company is classified as:
- Insolvent (Liquidate)
SOLUTIONS: The corresponding solutions available to your company are:
- Liquidate
OUR SERVICES: The corresponding service we provide to support the solution is:
OUR COMMENTS: You are in the position of having an unprofitable and insolvent company. Our Assessment is that your company is Insolvent (Liquidate).
You should think about your answer to Questions 3 and 4 – is it possible that with some radical restructuring to the company that it can be returned to profitability and regain the support of key stakeholders next year? If so, redo the questions and your company could be reclassified and the business saved.
If you still believe that your company can not be made profitable next year then it will remain insolvent and so the only solution available to you is Liquidation. You should check out our page on Liquidation to see what is involved.
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