What is the role of a financial advisor in the restructuring process?

A financial advisor plays a crucial role in the restructuring process by offering strategic guidance and negotiation support. This involves helping the company assess its financial position, evaluating various restructuring options, developing a financial plan, and advising on the best course of action to improve the company's financial health. Moreover, the financial advisor facilitates negotiations with creditors, stakeholders, and other parties, ensuring that the restructuring process is handled effectively and efficiently.

By providing insights based on market conditions and financial practices, the advisor helps the company craft strategies to enhance negotiation outcomes, which can ultimately lead to a more favorable restructuring agreement. Effective guidance and negotiation support are vital in achieving a successful resolution while maintaining stakeholder relationships, which is often a complex and sensitive aspect of the restructuring process.