Skilled Intervention Team
A company which enters a stay of proceedings is subject to the court which appoints a trustee on its behalf. KCR accompanies the trustee in the management and operation in accordance with the approval of the court.
For the purpose of providing clear conclusions to the trustee, the KCR intervention team – which includes an accountant, analysts and operation managers – perform an in depth analysis of the array of the activity, the financial reports, the capital structure and the total assets and liabilities inventory of the company, in order to gain and understanding within a short and immediate period of time, whether the company is insolvent and intended for liquidation or whether there is a chance to change its state in a process of recovery, for the purpose of performing an arrangement or a sale.
The KCR intervention team fully cooperates with the trustee vis-à-vis the company managers, while providing ongoing operational, managerial, economic and financial support. For further details about additional services read in the page about “Company Recovery” and in the page about “Business Diagnosis and Analysis”.
Stages In The Process
In a state of stay of proceedings, the KCR intervention team works quickly to find immediate streamlining solutions in order to maximize the company’s profits during the stay of proceedings, out of the aspiration to stabilize and better its state, while ensuring a number of stages in a complex and proven process.
In-depth examination and analysis. As a preliminary move, the KCR intervention team performs an in-depth examination and a detailed economic analysis in order to understand the economic potential while creating profit and loss statements, budget and cash flow. This move constitutes the infrastructure for creating the operation plan for the company streamlining and recovery, for negotiating with investors and financial bodies for the purpose of selling it, executing an arrangement or concluding to liquidate it.
Cooperation. The KCR intervention team holds conversations with key persons in the company, employees, suppliers and primary clients – all in order to obtain an accurate and reliable situation report of the company, to understand its weaknesses and strengths and to identify effective ways to rescue it. Another critical component for the success of the process is creating trust with clients, suppliers, employees and other involved persons.
Ongoing management. At this stage, the KCR intervention team performs operational and economic changes which are required in the company in accordance with the operation plan which was selected and approved by the trustee, where the first goal is to stabilize the company under continuous control and budget tracking and keeping its assets.
The Operation Plan
Following are a number of sections which constitute an organized operation plan which is performed by the experts of the KCR intervention team:
- Performing in-depth and effective analysis to examine the state of the company, to locate points of profit and loss and to determine business goals.
- Creating and presenting the operation plan.
- Performing meticulous management and control over the cash flow as well as the profit and loss on a daily level.
- Examining assets, taking inventory and equipment.
- Gaining full control of the company’s accounting.
- Managing and improving collection processes.
- Handling VAT refunds.
- Instilling managerial control mechanisms.
- Handling internal and external difficulties of the organization on an ongoing basis, such as employees, subcontractors, suppliers and creditors.
- Tracking legal challenges if necessary and raising them before the trustee.
- Preparing periodic reports as per the request of the trustee.
- KCR has an established affinity and relationship with some of the largest and most senior law firms in Israel, the banking system, as well as financial, institutional and other bodies.
- KCR has proven knowledge and experience of years of handling companies which have encountered insolvency proceedings in many areas of occupation, various sectors, and various scopes of activity.
- The KCR intervention team is composed of senior and experienced professionals who have led a large number of companies under the management of a trustee, a receiver and a liquidator.
- The main gold of KCR his to operate the company as a living business, to maximize its profits during the stay of proceedings and to move from managing a company in distress to managing an active company.
- KCR is committed to the success of the process.
- The KCR intervention team incorporates wide and integrative vision which combines finances and operations in order to move cross organization changes.
- The KCR intervention team performs periodic internal examinations of the organization and strictly follows internal control indexes (KPIs) in order to ensure meeting goals and in order to locate deviations and “Red Flags”.