Diamond FMS
We freeze the repayment for three years
The case and the problem
A company had an outdated revenue model and was struggling with financial pressure due to short-term loans. In order to make the company future-proof, the business formula had to be renewed. At the same time, urgent repair work was needed. Although the creditors were not an acute problem, it was clear that without a structural solution the situation would become untenable.
What went wrong?
High pressure due to short-term debt: The existing debt structure created a constant financial burden.
No room for investments: Due to the high repayments, there was little left to invest in innovation.
Insufficient stakeholder confidence: Without concrete plans, there was a lack of confidence among banks and creditors.
How do you solve it?
- Debt restructuring: Converting short-term debts into long-term loans to create financial breathing space.
- Strategic recovery plan: Develop a clear roadmap to modernize the revenue model and gain stakeholder trust.
- Creditor involvement: Communicate transparently and seek joint solutions.
Application of Diamond
With Diamond, the earning capacity of the company was accurately calculated. This gave both the bank and creditors confidence in the recovery plan. Diamond also helped monitor the cash flow, which made it clear how repayments could be temporarily frozen and how creditors could be paid off in full within three years. This approach and the confidence that Diamond provided allowed the company to make a successful transformation.
