Deloitte

June 10, 2009 08:00 ET

A New Wave of Restructuring for Canadian Companies

Deloitte talks about organizational distress

TORONTO, ONTARIO--(Marketwire - June 10, 2009) -

MEDIA ADVISORY: INTERVIEW OPPORTUNITY



Issue: As Canadian companies operate through unpredictable economic times,
rapidly-moving markets and increased competition from
non-traditional sources are emerging as threats to their bottom
lines. Companies in distress with outdated business models are
considering a variety of options in order to survive, including
restructuring.

"As it becomes harder to hit performance targets, virtually all
organizations need to consider some type of restructuring", says
Pierre Laporte, partner and leader, Canadian and North American
Reorganization Services practices, Deloitte. "Even the most
profitable Canadian organizations are searching for opportunities
to improve their performance and optimize their capital."

Impact: There is a trend towards revising business models and scenario
planning, based on current or potential organizational distress.
Companies considering a restructuring should start by examining the
best practices of leading corporations. Organizations recognized
for management excellence and agility are those that regularly
revise their operations, review their business models and renew
their market approaches to sustain growth.

This requires a commitment to four key principles:

1. Improve performance on a regular basis - identify areas of
underperformance, analyze available options and adopt strategies
to enhance operations

2. Evaluate critical market trends and events to help inform
decision making

3. Optimize receivables, payables, inventory and other forms of
working capital to maintain a strong cash position

4. Arrange and structure their debt and capital requirements to
maximize the value of their portfolios and manage risk

While distressed companies may negotiate with creditors to
reengineer their balance sheets, the success of these negotiations
is measured by a company's ability to reorganize the right way,
while ensuring that their operations remain profitable over a long
period of time.

Who: Pierre Laporte is a partner and leader of Deloitte's Canadian and
North American Reorganization Services practices, respectively, at
Deloitte. He has led numerous high-profile multi-jurisdictional
restructurings, including Canada's ABCP resolution, Mecachrome
International and Norbourg Group. Pierre is available to speak
about the new wave of restructuring and the impact on Canadian
companies.

Contact: Fabrice de Dongo
Deloitte Media Relations
(416) 874-3249
fdedongo@deloitte.ca


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