Corporate Turnaround- looking beyond just banks and the debtor
Presentation By Igor Zax on a conference on Corporate Financial Restructuring in Russia & CIS conference, Moscow, December 1-2 2009

Working Capital – Seeing a Broader Picture The article by Igor Zax, adresses working capital management within changing economic and industry environment, its links to business strategy, supply chain, distribution and industry models.

Published in Global Treasury Briefing and GT News – publications of AFP (Association of Financial Professionals). Reprinted with permission.

Taking a holistic approach to working capital- Pilot’s Log

The article analyses strategic approach to working capital, conceptual framework (outsourcing of financing), financing tools, redesigning supply chain, changing product mix and adjusting business model. It also addresses implications for private equity owned businesses

Reprinted with permission

mind-the-chain-lessons-for-firms-in-distressed-markets

The article shows how understanding of supply chain and industry models can open new opportunities for turnaround and private equity in general

Reprinted with permission from Private Equity News

Below is a discussion on Linkedin between Igor Zax (Tenzor Ltd.) and Tony Heywood (Gilcrest Services Ltd) on effect of credit insurance withdraw and latest government support initiatives on retail industry.

TH
Withdrawal of credit insurance has a devastating effect on the fashion retail industry and is holding back recovery. Has anyone yet received or requested help under the Budget insurance scheme yet?

IZ
Tony,
Just a small note- to the best of my knowledge the particular scheme is only covering reduction of cover through providing top up, not complete withdraw. My guess is most of the cases you refer to the cover is completely withdrawned, so the scheme would not help…

TH
Hi Igor
You are correct – it only covers reduction after 1st April and then only tops up to a max of the existing cover. So if cover is reduced to 30% it will only bring it up to 60%.

My feeling is, that it is likely to be of little help to the industry and is another Government initiative which is big on headlines but of little actual help.

I was hoping that I may be wrong but the lack of replies from here and other requests re-enforces my belief.

A little more about it in my blog

http://blog.esellit.com/

IZ
Hi Tony,

I guess one shall question the relevancy of the scheme for your sector. Firstly, it is for sellers based in UK- so unless the retailer buys from UK company (manufacturer if these still exist or distributor) it is not relevant at all.
Secondly, it only applies to whole turnover policy. What it is likely to mean is that there may be an incentive for insurer to actually reduce the cover, as they are still being paid on all sales, get less exposure and plus might charge a commission for administrating government policy on top of the 2% cost. This may also substantially increase cost to supplier, that is likely to be passed to retailer.
Could not agree more with the point in your blog about importance of communication with insurers. This would focus on three areas- complete and timely information (obvious point), getting the right interpretation (often the underwriter do not understand enough about the industry or company specific factors) and getting to the right level (somebody who can make an exception to general mechanical approach based on additional facts). Two latter points require a lot of credibility that one needs to build.
Lastly, do not assume supplier cannot take uninsured risk. Unless the insurance is tight to their own financing (such as invoice discounting or factoring), there is no reason they cannot take uninsured risk. The credit controller may think they cannot- CEO might have a different view if you are a very important customer AND you can provide reasonable comfort that you will be able to pay.

TH
Excellent points Igor

Thanks

icr6-2-4

This article by Igor Zax, currently Managing Director of Tenzor Ltd. was first published in Issue 2, Volume 6 of International Corporate Rescue journal and is reprinted with permission of Chase Cambria Publishing – www.chasecambria.com

Presentation by Igor Zax, currently MD of Tenzor Ltd.  Socialising Working Capital Trends and New Models at Midmarket Turnaround- joint event organised by  Chicago Booth, TMA and IIM, November 2008

Download Interview with GARP Risk Review

Interview by Igor Zax, currently MD of Tenzor Ltd. with GARP Global Risk review on the credit risk and operational risk challenges posed by trade receivables, the loss of trust in the asset-backed commercial paper market and the pros and cons of credit insurance