Balance sheet restructuring for a listed petrochemical manufacturing company

The challenge

A publicly listed petrochemical manufacturing company experienced financial losses, severely impacting its liquidity, solvency, and equity position. Compliance with stock exchange regulations and corporate governance standards became increasingly challenging, further restricting access to financing.

With a turnover of $200M and a workforce of 800 employees, the company faced mounting financial pressures. In response, the board of directors sought urgent strategic interventions to halt the decline and revitalize the business

Solution

A financial engineering program was developed to ensure regulatory compliance, optimize costs, and enhance profitability, ultimately strengthening the company’s liquidity position. A series of meetings and workshops were conducted to formulate a detailed five-year business plan, with a clear focus on cost optimization strategies.

Simultaneously, a comprehensive financial strategy was designed, encompassing bank debt restructuring, asset impairment assessments, and the implementation of new receivables collection techniques. Additionally, strategic negotiations were initiated with key suppliers to establish revised guidelines that support the company’s financial stability and long-term sustainability

Implementation

Several strategic programs were launched in parallel, focusing on organizational restructuring and financial optimization. This included the redesigning of policies, procedures, and authority matrices, aligning them with cost reduction and efficiency objectives.

A comprehensive due diligence program—covering legal, operational, and financial aspects—was initiated, with a key role in coordinating efforts among stock exchange authorities, consultants, and stakeholders. Additionally, I served as the lead representative alongside the board in developing a robust five-year financial and strategic business plan, ensuring alignment with long-term growth and governance objectives

Achievements

The balance sheet revamp was successfully completed, incorporating a mix of financing strategies, including fund-raising with a single bank and restructuring debt for longer-term repayment. An asset impairment assessment of $160M was conducted in accordance with accounting standards, reducing future depreciation and strengthening financial stability.

Liquidity was restored, and operational efficiency improved following the cost optimization program. The capital reduction process was finalized with full due diligence and stock exchange compliance, leading to renewed investor confidence and an upward momentum in the share price. The company returned to profitability, with banks reassessing their exposure from a more favorable position.

Additionally, a new business plan—focused on investment in a chemical plant—was completed and submitted to authorities for rights issue approval, paving the way for future expansion and growth.