How do you recognize a stressed financial situation?
There are some early indicators – for example, if no liquidity forecast is or can be prepared or the rating deteriorates. Clear signals also include when the liabilities due are very high and constantly growing, when covenant breaches occur, when commercial credit insurers are reducing their commitment, when there is uncertainty about the timely payment of liabilities, or when the liquidity forecast indicates that the financing options will be fully utilized in the medium term.
- Matthias Böhme
Partner