Revival of Sick Units – Comprehensive Financial & Operational Turnaround Solutions
A Sick Unit is an industrial or business enterprise that has accumulated losses and negative net worth, making it unable to meet its financial obligations, operational expenses, or debt servicing. Revival of Sick Units involves strategic financial restructuring, operational realignment, and securing necessary funding support to bring the enterprise back to profitability and sustainability.
We provide end-to-end Revival and Rehabilitation Advisory Services for sick units under MSME sectors, Co-operatives, Manufacturing Industries, and Service Enterprises. Our approach involves a detailed diagnostic review of financials, root-cause analysis of business inefficiencies, and formulating a pragmatic revival package tailored to the business’s unique challenges.
We assist in restructuring existing debts, preparing bankable revival plans, negotiating with lenders for One-Time Settlements (OTS), arranging additional working capital, and implementing cost control mechanisms. Additionally, we advise on statutory compliances, turnaround strategies, business process re-engineering, and identifying alternative revenue models for sustainable recovery.
Our structured approach ensures that distressed businesses not only recover financially but also regain operational efficiency, stakeholder confidence, and long-term viability through carefully crafted and executed revival strategies aligned with government schemes and lender rehabilitation policies.
Frequently Asked Questions (FAQs)
A Sick Unit is a business enterprise whose accumulated losses have eroded its net worth, leading to its inability to meet financial obligations, as defined under MSME Act and RBI guidelines.
Yes, banks provide rehabilitation packages, debt restructuring, and financial support under RBI guidelines and MSME rehabilitation policies to viable sick units with proper revival plans.
A Revival Package is a comprehensive plan that includes debt restructuring, additional fund infusion, operational improvements, and financial projections aimed at turning around a sick unit.
Absolutely. We represent clients in negotiating favorable OTS terms with banks, ensuring reduced settlement amounts and manageable repayment schedules.
Project Finance
CA. Dhiraj Jain
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