P4 – Content to cover

1. Know the financial support for business restructuring • Restructuring: release working capital (eg via sale and leaseback); market retrenchment; http://www.tutor2u.net/blog/index.php/business-studies/comments/revision-presentation-retrenchment consolidation; refocusing business goals (eg redirection from export markets to domestic markets); overhead reduction; outsourcing; public to private buybacks; http://www.bbc.co.uk/news/business-15751988 asset stripping; http://www.bbc.co.uk/news/uk-england-hampshire-15882620 retention of majority equity; downsizing; investigation of new market opportunities; administration and pre-pack buyouts P4 – Content to cover

2. Statement of Insolvency Practice 16 (“SIP16”): “An arrangement under which the sale of all or part of a company’s business or assets is negotiated with a purchaser prior to the appointment of an administrator, and the administrator effects the sale immediately on, or shortly after, his appointment.” What is a pre-pack?

3. Re Kayley Vending Limited [2009] BCC 578 at 583: “A general summary of these concerns would be that the speed and secrecy which give rise to the advantages claimed for pre-packs may too easily lead the directors and the insolvency practitioner to arrive at a solution which is convenient for both of them and their interests (perhaps also satisfying a secured creditor who might be in a position to appoint his own receiver or administrator), but which harms the interests of the general creditors because: (i) it may not achieve the best price for the assets; (ii) credit may be incurred inappropriately in the pre-appointment period; (iii) they are deprived of the opportunity to influence the transaction before it takes place; and (iv) having been presented with a fait accompli , they have insufficient information to make it worthwhile investigating and challenging the decisions taken.” What are the perceived problems with pre-packs?

4. P4 – when may a business consider restructuring • Ensure survival but also exploit new trends • Internet presence is now the key! • How else has technology changed? • Supermarkets do home delivery now Info

5. As a financial expert you must write a formal letter to an important client Mr B Sugar whose business is suffering from the recession and he is investigating his options for what he could do in the future. Your letter must describe the different options available to him with advantages and disadvantages. P4 – Task