Restructuring at Danfurn Harvard Case Solution & Analysis

Restructuring at Danfurn Case Study Analysis

Despite of the cost associated with this option, the benefits have outweighed the cost. Therefore it is so far the most appropriate restructuring option among the all other stated options, as it will treat each of the parties as per the size of their claim rather than accommodating all of the lenders in a similar manner. We can neither opt for bankruptcy nor for sale process as a part of the restructuring option because the company does not contain enough assets to satisfy the amount of debt. It is in the mutual favor of all the concerned parties that the company should continue to operate as this will allow the company to meet its current liability while providing the company with sufficient time frame to satisfy all its claims. In order to achieve this, we need to adopt the out of court restructuring option becauseit will allow the full interest payments which in other case may have been prevented due to the laws and rules related to the insolvency proceeding.

Company Proceedings if Negotiation Falls Apart

In case if the negotiation does not work as expected despite of the allocated time and resources; an alternative plan will be implemented based on a realistic expectations and values. By involving an independent third party,we will be able to develop more constructive environment that will allow all the parties to present their opinions regarding the appropriate restructuring methods and will facilitate in resolving the issues with more objectivity and on a fairer basis through mutual consent.

As the neutral third party will help in overcoming the obstacle that restricts the process of negotiation among the parties at an initial level and will allow in achieving a mutually agreed terms of negotiation. The mediator will further contribute by managing and designing the procedure and restructuring terms in a way that will provide an opportunity to each of the party to maximize its value by guiding them through communication in such manner which will end up delivering positive results.................................


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