CONSULTING
Consulting Engagement, also known as Viability Assessment, for insolvent businesses, is now a common practice. It is generally initiated by the secured creditors, such as banks or alert debtors. An experienced professional like Kunjar Sharma & Associates Inc.—if engaged in the early stages—is often able to identify problem areas that have not been recognized, and then to come up with recommendations that greatly increase the chances of providing a viable solution, while improving performance and recovery.
Typically Kunjar Sharma & Associates Inc. will do such assessments from both a financial and practical perspective. We are geared to undertake such assignments, perform the investigation, and report on the debtor's affairs with a minimum of delay. Where it is appropriate, we will work with management in preparing a comprehensive action. We can also help the business in formulating proposals which involve either new debt or equity, on the one hand, or compromises of unsecured creditor debt, on the other. If it is necessary, we can assist secured creditors in assessing the value of their security and the debtor's viability.
If the business can be rescued, the creditors’ position protected and enhanced, the debtor's operations improved from the lenders perspective—then a satisfactorily performing customer is retained. If the business is not viable, the analysis contained in our report will help justify the secured creditor enforcing its security. We are often also able to secure the debtor's cooperation in an orderly wind-up of the business, thereby facilitating an improved recovery.