Assessing the business’s capacity for rehabilitation begins with the question of whether, after the planned operational changes, it can generate lasting revenue sufficient to cover ongoing costs and agreed creditor payments. Revenue, margins, staffing needs, ability to deliver, financing, and investments must be reflected in coordinated profit, liquidity, and asset plans. New loans, capital contributions, asset sales, or contract amendments should be included only if their implementation is sufficiently reliable. For key assumptions, a realistic baseline scenario and less favorable scenarios should be calculated. The plan must show how temporary liquidity shortfalls will be covered and what reserves are available in the event of delays. Measures need clearly assigned responsibilities, deadlines, and measurable results. Dependencies on individual customers, suppliers, permits, or financing providers must be disclosed. The viability assessment should also explain how deviations will be detected and what corrective measures are available. A plan that balances on paper is not sufficient if its operational requirements cannot be implemented.
Viability of a Business Rehabilitation Plan in Georgia
A rehabilitation plan for a business in Georgia is viable if its measures can realistically be financed and the business has sufficient liquidity throughout implementation. The going-concern forecast must be based on verifiable assumptions and take unfavorable developments into account.
VivAVia can make mistakes. Check important information.