Webinar organized by Banca CF+ dedicated to: “Factoring as a lever for boosting the company”- Duke & Kay’s Managing Partner Maurizio Ria during a webinar talking about a business case
This is a video in Italian of Duke & Kay’s Managing Partner Maurizio Ria during a webinar talking about a business case. Duke & Kay, our Globalise partner from Italy, stepped in the webinar organized by Banca CF+ dedicated to: “Factoring as a lever for boosting the company”.
Maurizio Ria talks about a #restructuring project he is leading as Chief Restructuring Officer: The Scandolara #business case. This is a historical company in the packaging sector (tubes for pharma sector, food, toothpastes, etc.).
The company dealt with over-indebtedness crisis handled throughout a private settlement proceeding (the so-called article 67 of the Italian Bankruptcy Law) just a few years before the #covid.
Duke&Kay was called to support the current management and Maurizio Ria joined the Board.
Among others, to meet the financial objectives agreed with the Lenders within the recovery plan, the company divested some non-strategic assets and refurbished the production plans, to improve the manufacturing efficiency.
Since then, the company performed regularly, accomplishing to all the covenants until the 3rd quarter of 2021.
For these reasons some banks shifted the credit vs. Scandolara from “distressed” to “performing”.
Unfortunately, in the 4th quarter the increasing cost of energy and raw materials led the company suddenly in troubles and these caused the breaking of the covenants set at December 31, 2021.
Since Q1-2022, however, the company successfully passed on the cost increase into the products’ sales prices (in some cases even +30%) and despite this, all customers remained faithful to Scandolara.
In the meantime, however, the market started an explosive #growth (after the pandemic slow down) and this caused the urgent need of new finance to support the working capital requests.
But the just occurred Covenants’ violation did not allow the banks to provide this new #finance. For this reason, to face the increased financial needs linked to the growing #turnover applied for the factoring solution; the fast solution provided allowed a further step towards the recovery completion of Scandolara.
In conclusion, notwithstanding the clear financial difficulties, considering the increasing volume of business, the excellent relationship with customers and suppliers, allowed Banca CF+ to get the management communication and seized the opportunity to support Scandolara in the relaunching process.
Once more, competence and execution speed made the difference!