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What does a chief restructuring officer do?

posted by Justin Ward on 15/09/2014
What does a chief restructuring officer do?
 

When companies find themselves in trouble, they don’t always have the capabilities to get out of trouble. So, some businesses seek expert assistance to enhance their operations. In our experience, leading companies often recruit a professional, known as a chief restructuring officer (CRO), to lead the improvement process.

What exactly is a CRO?

While the term CRO is extensively used in the United States and Europe, it is an emerging concept in Australia.

For a company facing financial difficulties, a CRO helps press the reset button. They are a temporary adviser whose goal is to put a company back on its feet and then hand the reins to management. The CRO has their eye on the big picture and sets milestones for stakeholders to keep a business in business.

A key role for the CRO is to help everyone speak the same language. In some cases, misunderstandings can emerge when technical advisers and managers try to communicate. A CRO helps to ‘translate’ and ensure all parties are on the same page. CROs also provide stakeholders with accurate information, renegotiate supplier contracts and evaluate corporate structures.

Managing change

To address its challenges, a business may need to make substantial changes – including implementing a new operating structure. Now, managers typically have their hands full with day-to-day tasks and the more time they spend dealing with creditors or shareholders, the less time they’re on the shopfloor.

By engaging a CRO to tackle the improvement efforts, managers can focus on their core activities. By working behind the scenes, a CRO can drive change without the day-to-day running of the business being significantly affected.

How a CRO can help

At Macleay Partners, we have played the role of CRO to help our clients enhance their operations.

For example, we worked with a major Australian mining services company that was experiencing challenges in securing additional finance and streamlining internal decision-making. We helped restructure its operations to address legacy issues (including tax) and to develop a robust platform for sustainable expansion.

As a result of our efforts, the company could access new funds to boost its working capital, and it is well placed to capitalise on opportunities in the future. You can find more details of this engagement here.

We’d be happy to discuss how the involvement of a CRO might help your business. For more information, please contact Macleay Partners Director Justin Ward at justinward@macleaypartners.com or on (02) 8211-2733.

About the Author

Justin Ward

Justin Ward / (02) 8211-2733

Justin is the Director of Macleay Partners. He brings a proven track record of delivering successful outcomes in difficult circumstances with diverse experience in areas of audit, consulting and insolvency.

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