Restructuring in the aviation industry
The ability to identify risks, scenario plan and maximise the runway for change, through cash management, is a key starting point. This is what all management teams are focused on, and they should continue to keep a close eye on operations. As demand in civil aviation slowly bounces back, businesses that were operating at the cutting-edge of aerospace, dealing in the latest materials and technologies before the pandemic hit, should then expect to see a gradual resurgence in demand.
Conclusion
While we expect deeper aviation restructurings and an inevitably higher level of insolvencies in this cycle, there are a number of options for businesses to consider. Management teams in this sector are aware of these issues and many have been working hard to address them. What they need is continued support in contingency planning in order to help them ride out the months ahead. The aviation industry has always been a truly global industry, with various parts of aircraft being designed, tested, and manufactured worldwide. Careful thought and strategic planning carried out now will provide the best chance, not only of its survival, but also future strength and growth opportunities. FRP have undertaken a number of assignments in the sector both pre and post-COVID helping clients assess options, and have lead successful negotiations with global customers such as Rolls-Royce and Safran. For businesses currently facing challenges, our team work closely with sector specialist interim and turnaround experts to ensure we deliver both operational and financial turnaround solutions. Options might include Company Voluntary Arrangements (CVAs) which can offer a route to rehabilitate companies while optimising value and outcomes for stakeholders. FRP have also advised businesses in the sector seeking acquisition opportunities.
Restructuring advisory
Corporate restructuring
Corporate advisory
Contentious insolvency
Solvent restructuring
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