Covendium Introduces New Evaluation Process to Diagnose Conditions of Ailing Businesses

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Leading commercial debt relief firm Covendium now offers a streamlined financial analysis tool to diagnose and treat problems that plague distressed business owners and investors struggling under the weight of weak cash flow and property value loss.

Covendium specializes in comprehensive commercial debt restructuring and resolution.

The evaluation isn’t meant to be the cure, in itself – but we can assess their stage of financial distress and discuss the different strategies that would be recommended to put the client on the road to recovery

As the ailing economy continues to limp along, many business operators and investors find it challenging to remain competitive. Many company leaders and entrepreneurs find themselves unable to meet their debt service payments and operating expense obligations, and need guidance on how to proceed. Covendium, the nation’s largest debtor-side commercial debt restructuring and advisory firm, is introducing a new evaluation tool to help struggling investors and business operators consider their options. The process allows these investors and business operators to benefit from a brief but fairly comprehensive and intensive review of their current financial and operational position. The seasoned Covendium leadership team then delivers a Shark Tank roundtable dialogue where the client will hear candid observations about the estimated current value of their assets or operations, the range of viable resolution or recapitalization options that may be available under current market conditions and the next steps required to pursue a chosen plan of action. Any fees paid towards the evaluation are applied as a full credit towards a Covendium engagement.

“If financial distress could be compared to cancer, we operate like a financial oncologist. The evaluation process is an intensive virtual financial physical for a client who is suffering from symptoms of financial distress, or is concerned that their investment or operating business is not strong enough to survive under current market conditions,” explains John Douglas, COO and Managing Director of Covendium. “The evaluation isn’t meant to be the cure, in itself – but we can assess their stage of financial distress and discuss the different strategies that would be recommended to put the client on the road to recovery.”

During the evaluation process, Covendium will look at the client’s lenders, perform summary financial analysis and have a detailed conversation between the client and its Executive Team to determine what the investor, operator or entrepreneur is most concerned about. Covendium’s evaluation process can shed light on the practical reality of helping a distressed client pursue its restructuring goals. “Before a client goes through Covendium’s evaluation process, they may be making critical decisions without the full knowledge of their situation, without knowing about all of the tools available to restructure their ailing capital structure and without having the experience of how to pursue their objectives,” continues Douglas. “After going through the evaluation process, a client may not like what they hear about the reality of their situation, but they will be receiving impartial advice from a seasoned group of business professionals who spend most waking hours doing capital restructuring work,” says Douglas.    

At the conclusion of the evaluation, the Covendium Executive team will make a number of recommendations regarding the client’s respective position and what actions their specific lenders have taken with other Covendium clients, based on Covendium’s $5 billion-plus in debt resolution engagements.

“Some banks are more likely to litigate than settle, and some are anxious to recapitalize their own balance sheet. Through our many years of working with lenders we have developed a proprietary bank evaluation system that directs how each lender is likely to approach renegotiation attempts,” notes Douglas.

Covendium will give the client an accurate perspective on what can be expected if they engage Covendium for assistance with debt solutions. Covendium will also provide input regarding operational improvements to increase cash flow, and what realistic financing rates would be from non-bank sources.

“The new evaluation process by the Covendium leadership team is offered for what amounts to $21 a day – how can any prudent investor or business owner suffering from financial distress afford not to spend $21 a day?” asks Douglas.

“The first step to curing a disease is finding out exactly what is making you sick. Only then can you begin to explore treatment options and get on the path to wellness,” says Douglas. “This evaluation process is the first step towards securing your future financial health.”

For more information about the new evaluation process from Covendium, or for information about any of Covendium’s products or services, call them at (407) 284-4000, or view them on the web at http://www.covendium.com.

About Covendium
Covendium specializes in comprehensive commercial debt resolution, restructuring and business consulting for clients whose financial model has been compromised by the economic downturn and the bank liquidity crisis.

For some clients, all they need is an experienced negotiator to provide their lender with the reality of the financial situation and the tool-set to restructure their obligations. For other clients, Covendium provides business consulting and access to non-bank funding sources.

Their team of professional advisors has successfully restructured billions in transactions, with dozens of banking institutions (including major national, regional and community banks) and over 30 separate non-bank financial counterparties.

Bad things happen to good people. Covendium is a premier national debt resolution firm that helps their clients with everything from commercial foreclosure to debt management to commercial debt restructuring to private debt placement.

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Jonathan Gorman
Covendium
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