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A company had an outdated revenue model and was struggling with financial pressure due to short-term loans. To future-proof the company, the business model needed to be updated. At the same time, urgent repairs were required. Although creditors weren't a pressing problem, it was clear that without a structural solution, the situation would become unsustainable.
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 from banks and creditors.
How do you solve it?
- Debt restructuring: Converting short-term debts into long-term loans to create financial breathing room.
- 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 company's earning capacity was accurately calculated. This gave both the bank and creditors confidence in the recovery plan. Diamond also helped monitor cash flow, making it clear how repayments could be temporarily frozen and how creditors could be fully repaid within three years. Thanks to this approach and the confidence Diamond provided, the company was able to successfully transform.
