Overview
The client was a large automotive manufacturer and faced a severe liquidity crisis that threatened its continued existence, requiring urgent financial intervention. To secure a multi-billion loan from a U.S. government program, the company was required to submit a global direct 13-week cash flow forecast – a process that had never been completed at this scale within the organization.
AlixPartners was engaged as a restructuring advisor to support contingency planning and improve the accuracy of the company’s cash flow forecasting. The team developed templates for each major operation to submit bi-weekly forecasts, which were then consolidated regionally and globally to meet Treasury requirements. They also assisted in negotiations for debtor-in-possession financing agreements and created contingency plans to ensure the Client could survive and negotiate with the government if operations ceased.
As a result, the client’s first-ever global 13-week consolidated cash flow forecast was completed in just two weeks, meeting the Treasury’s mandate and securing the necessary funding. The accuracy of the cash flow forecast improved significantly, and although the contingency plan was never activated, it provided critical assurance during a period of extreme uncertainty. The company ultimately filed for bankruptcy and successfully emerged 40 days later.