Battling the financial impact of the corona virus: proactive approach towards financiers necessary

The impact of the COVID-19 pandemic hits us all very hard, including the Baltic business community. Many activities come to a standstill, sales drop sharply or may come to a complete stop. This can quickly lead to a deterioration in your liquidity and possibly to a 'breach' of financial covenants, agreed on in the credit documentation with your financier). Much is expected of you in this hectic time.

Examples of a proactive approach:

— Don't wait too long to talk to your financing banks. Be proactive and initiate discussions yourself;

—  Make sure you have access and insight into current (and possibly also future) financial figures, including working capital and cash flow developments;

— Prepare various scenarios and ensure solid assumptions;

— Be clear in what you expect from your financiers, for example, on which points should the current credit documentation be amended.

Oaklins offers dedicated restructuring advisory

We can help you with performing a quick scan of your actual financial performance versus your credit documentation in place. This in order to prepare and make revised arrangements with your current financing banks, request temporary extension of credit facilities, sell non-core assets, find alternative sources for capital including financial investors and/or restructure your balance sheet. We are seasoned and committed professionals and have extensive experience with such processes.

Oaklins advises in applying for state support in Latvia

In addition, our team in Latvia can aid you through the application for support programs offered by ALTUM to businesses affected by the COVID-19. ALTUM will offer credit guarantees to businesses who have difficulties in meeting their current obligations with credit institutions. In addition, ALTUM will also offer loans with flexible conditions to support those businesses that are in need of extra capital to survive.

What we do

— Business reviewing and forecasting to ascertain debt capacity and fundraising options;

— Raising different forms of external financing;

— Negotiating and providing proactive approach with current lenders on a reset of covenants;

— Maintaining extensive relationships with banks, debt funds, other alternative lenders and equity providers.

Talk to our specialists in the Baltics

Oaklins' trusted senior advisors are entrepreneurs and have the skills and experience to deliver excellence for every client, from large nationally and internationally listed companies to midsize private businesses. Our clients find that the faith they put in us is well placed, and that our results keep them on top.

Valerija
Valērija Lieģe Partner
Tel. : 371 29 178 061
E-mail: v.liege@lv.oaklins.com
Janis
Jānis Lasmanis Partner
Tel. : +371 26 559 544
E-mail: j.lasmanis@lv.oaklins.com
Anna
Anna Aile Managing Director
Tel.: +371 26 310 006
E-mail: a.aile@lv.oaklins.com
Reinholds
Reinholds R. Razums Associate
Tel.: +371 29 466 611
E-mail: r.razums@lv.oaklins.com

  

About Oaklins

Oaklins is the world’s most experienced mid-market M&A advisor, with over 850 professionals globally and dedicated industry teams in more than 45 countries. We have closed 1,700 transactions in the past five years.

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