Corporate Solvency Stress Test Advisors L3C Maintains that Corporate and Municipal Insolvencies are Predictable and Preventable

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Current Business Risks Challenge Corporate Managers and their Board of Directors as well as Municipal Leaders for what they thought would never have to face: Insolvency!

When most creditors in municipal and corporate bankruptcies recover nothing, the opportunity to prevent such damages through stress testing is of tremendous value to all parties and to society. CSSTA, L3C is a new enterprise with offices in Ripton, Vermont. The L3C form of incorporation signifies the pursuit of a public good as well as profit, by preserving the existing value in corporations and municipalities, as well as saving jobs, investments, technology and community. Stress testing is becoming a key component of good corporate governance.

Corporate Stress Testing Advisors L3C, (CSSTA), is targeting companies as well as municipalities approaching a Zone of Insolvency.

The stress testing process starts with a management discussion and the collection of several years of operating statement data and balance sheet information, business plans, mission statements, culture and strategy for the client enterprise and their major competitors. These data form the basis for computing ratios, running economic models, and the probability of a future bankruptcy. The Zone is determined by either a balance sheet test of cash flow test, or both. Modeling future scenarios is based on known risk factors such as technological obsolescence, pending obligations, market conditions, interest rates, costs and margins. These quantitative and qualitative analytics can lead to an improved state of preparedness and a return to growth and sustainability for our corporate- and municipal clients. For municipalities the process is similar although different measurements may apply.

For more information, please contact: (
Frank Wolf, frkwlf (at) gmail (dot) com, 802 388 9911

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