Ways and methods of financial rehabilitation (rehabilitation) of enterprises.

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The concept and essence of the procedure for financial recovery of an enterprise

Recognition of an enterprise as insolvent, with an established diagnosis of probable bankruptcy in some time period, is the basis for the implementation of financial recovery procedures.

Methods of financial recovery are developed for a specific enterprise and depend on the current situation at the enterprise and, above all, on the depth and stage of the economic (financial) crisis.

It is possible to determine at what stage of crisis or insolvency an enterprise is located by assessing its financial and economic condition (options of which were discussed in previous lectures). Depending on the chosen option, prompt diagnosis or a more complete study can be carried out to identify the causes of the crisis. But regardless of which option was applied, based on the results of the analysis, a crisis situation at the enterprise can be presented:

– as a stage of financial instability, manifested in mismatch of financial flows and deterioration of the balance sheet structure;

– a hidden stage of bankruptcy (insolvency), manifested not only in a mismatch of financial flows and a deterioration in the balance sheet structure, but also in an increase in liabilities, the emergence of chronic insolvency, which is accompanied by a decrease in the production and market potential of the enterprise and the presence of signs of social bankruptcy.

Depending on the stage of insolvency or instability, financial recovery measures can be either voluntary or compulsory. The measures are voluntary in nature when the decision to introduce financial recovery measures is considered, accepted and implemented at the enterprise level. Compulsory in nature, in the case when measures for financial recovery are introduced at the enterprise as determined by the arbitration court with the appointment of an administrative manager, i.e., as part of the procedure for declaring the debtor enterprise bankrupt. The purpose of introducing a financial recovery procedure is to give the company the opportunity to restore the ability to meet its obligations.

Financial recovery is a voluntary or compulsory procedure carried out at the micro level of an enterprise in order to compensate for a regular deficiency cash to carry out its current activities, restore the solvency of the enterprise and pay off obligations.

If there is a stage of financial instability or a latent stage of bankruptcy, crisis management consists of selecting and implementing the following methods of financial recovery: general, operational, local, long-term (up to 1.5 years) and long-term investment (for a period of more than 1.5 years), which together represent a full range of financial recovery methods.

The criteria for choosing methods of financial recovery can be the following groups of indicators:

1st group. Indicators characterizing external signs of insolvency:

– current ratio;

– coefficient of provision with own working capital; – coefficient of severity of overdue obligations.

If an enterprise has external signs of insolvency, general and operational recovery methods should be applied.

2nd group. Indicators characterizing the efficiency of enterprise management:

– product profitability:

– return on assets;

– return on equity;

– presence of losses.

A debtor enterprise that has unsatisfactory indicators of the second group is subject to local measures to improve financial condition.

3rd group. Indicators characterizing production and market potential:

– state of production and sales of products (volume of products produced and sold, their competitiveness);

– state and use of production resources (number, labor productivity, capital productivity, depreciation rate of fixed assets, structure of current assets, turnover of current assets).

Unsatisfactory values of group 3 indicators indicate a deep financial and production crisis and require the liquidation of the enterprise or, if the enterprise is preserved, the consistent application of the entire range of financial recovery methods with the implementation of long-term financial recovery measures.

Financial recovery requires the use of a set of measures to increase the solvency, financial stability and efficiency of enterprises and organizations and involves the development of a financial recovery strategy, appropriate programs and plans based on the methods chosen for this purpose.

To select methods of financial recovery, clear criteria are needed. The basis for their choice is the stage of the financial crisis at which the enterprise (organization) is located. This is either the stage of financial instability, the hidden stage of bankruptcy, the stage of insolvency (real bankruptcy), the stage of official recognition of bankruptcy, the post-judicial stage.

The most important criterion when choosing methods of financial recovery is the cost of the proposed options for overcoming a crisis situation, achieving maximum effect at minimal cost. The choice of recovery method also depends on the desired result: restructuring the property of the enterprise (organization), implementing opportunities to increase the authorized capital, eliminating wage arrears, retraining personnel, etc.

When assessing criteria, it is necessary to take into account the causes of financial instability. Different causes of the crisis require different recovery methods. Thus, if the main reason for insolvency was a sharp increase in overdue accounts receivable, then the restoration of financial balance will be facilitated by: assignment, factoring, and the use of bills of exchange.

The nature of the problem should also be taken into account. Methods must be adequate to the problems that arise and solve precisely these problems. Thus, when producing a large volume of defective products, the problem, depending on its scale, can be solved by tightening technological and labor discipline, additional control of product quality and technical condition of equipment, increasing the staff of repair workers and by purchasing new equipment based on concluding a leasing agreement with a leasing company and etc.

The choice of financial recovery method is also influenced by regional specifics: features of local legislation, primarily tax, the possibility of obtaining additional financial support from local authorities. If there are favorable conditions in the region for attracting investments and legally provided benefits, the enterprise can afford to use more costly recovery methods.

When choosing methods and programs for financial recovery, it is also necessary to keep in mind industry specifics. The process of financial recovery of a trading company requires less financial resources than the process at an industrial enterprise of similar scale.

It is also important to consider the size of the enterprise. The large scale of the enterprise makes organizational changes difficult, but the advantage of such enterprises is a larger resource base. Small company may recognize the need for change faster than a large corporation, but be unable to implement it due to a lack of resources.

When evaluating methods according to criteria, the age of the enterprise also matters. The inertia of old enterprises (companies) is stronger than that of young ones, and accordingly, deep changes are less likely for them. At the same time, old companies carry out structural changes faster than young ones, since changes in their structure often turn out to be the only possible way survival.

Another important criterion is the degree of risk that companies are willing to take. It is not always possible to predict the consequences of the implementation of certain measures or the influence of a number of external factors. Therefore, sometimes we have to give up the most effective methods in favor of less risky ones, less susceptible to external influences, but more predictable.

The necessary criterion is the duration of the implementation of the financial recovery program, and the real reserve of time. So, if an enterprise has overdue debt and there is a real threat of creditors going to court, then prompt measures are advisable to restructure the debt, defer and installment payments, offsets, pay off debts with its own products or services for converting debt into shares of the enterprise, etc.

The choice of financial recovery methods involves a certain sequence of actions:

a) analysis of financial and economic activities allows us to identify the most pressing problems;
b) options for solving these problems are determined for primary financial recovery and ways to further increase financial stability;
c) alternative solutions to problems are assessed according to various criteria;
d) the consequences of using the selected options under various conditions are assessed;
e) the financial recovery program selects methods that allow you to obtain the desired results with minimal costs. The choice of financial recovery method has a direct impact on the achievement of the goals set, on the sustainability of the financial condition of enterprises and their future.

Currently, it is possible to bring an unprofitable enterprise out of a crisis through its modernization, reconstruction, transformation of technology and organization of production, as well as its diversification, improving the quality of production and financial management.

Restructuring is a set of measures that differ both in types, goals, and implemented actions. Restructuring is aimed at increasing production efficiency, increasing the competitiveness of the enterprise and its products, as well as improving its investment attractiveness. It includes a set of measures aimed at improving the organizational structure and management functions, modernizing technical and technological aspects of production, improving financial and economic policies, reducing production and sales costs, best use material and labor resources, creation of a modern information system and document flow.

Consequently, restructuring adapts the enterprise's management processes to changes in the external and internal environment and in corporate relations with partners.

The mechanism for the financial recovery of an enterprise in bankruptcy is a system of successive steps aimed at achieving the ultimate goal - long-term financial stability in market conditions.

When conducting a comprehensive analysis of the financial and economic activities of an enterprise undergoing bankruptcy proceedings, it is necessary to be guided by the Decree of the Government of the Russian Federation dated June 25, 2003. No. 367 “On approval of the Rules for conducting financial analysis by an arbitration manager,” which defines the basic principles and conditions for conducting financial analysis by an arbitration manager, and also determines the composition of the information that is used for the analysis. This regulatory act is sufficient to satisfy the goals of conducting a comprehensive analysis of the financial and economic activities of an enterprise for the purpose of its financial recovery.

Based on the results of a comprehensive analysis of the enterprise’s activities, the causes of the crisis situation are identified, a general analytical conclusion is formed, the prospects for financial recovery are assessed, an anti-crisis management strategy and operational, tactical and strategic mechanisms for bringing the enterprise out of the crisis and achieving strategic goals are developed.

A set of tasks for forming a strategy for the financial recovery of an organization is being developed, which is linked to the implementation of its general goal and subgoals. Depending on the fundamental nature of the adopted goal and the timing of its implementation, an appropriate enterprise development strategy is selected, the parameters of which are justified by the requirements for the efficiency of investments allocated for these purposes, as well as the conditions of acceptable relationships between sources of investment funds and their use.

If causes are identified, the elimination of which is unable to lead the enterprise out of a crisis situation, and the implementation of financial recovery measures does not allow achieving solvency and long-term financial stability, a liquidation strategy is implemented, and the next stage will be declaring the enterprise bankrupt with its subsequent liquidation.

Achieving financial balance requires interrelated systemic transformations, i.e., comprehensive restructuring.

Financial recovery should ultimately come down not only to the implementation of a tactical mechanism for restoring financial stability, but also to ensuring financial stability in the long term, which is the main goal of the enterprise’s financial recovery strategy.

When implementing the strategic mechanism, it is necessary to apply economic growth strategies. It should be noted that the concentrated growth strategy, integrated growth strategy and diversified growth strategy reflect progress-oriented activities. Its forms can be an improvement in the market position, a strengthening of the position in the industry, a transition to the markets of other goods, or a combination of these.

These types of strategies are characterized by one obligatory condition for the behavior of the organization and the manager - activity in the field of core activity, that is, the search for new ways to strengthen its position in the market. At the same time, it is expected that the situation will constantly improve in two main areas: increasing the rate of accumulation of own funds for subsequent strategic maneuver or deepening connections with established categories of consumers and improving its position in the market. In addition, it is necessary to ensure constant monitoring of new developments in order to accelerate the development of scientific and technological achievements in the production of goods and obtain commercial results.

In general, the financial recovery mechanism is a system of tools and methods for optimizing the business obligations and requirements of a given enterprise to a state of balance of incoming and outgoing financial flows, which ultimately ensures its satisfactory solvency and financial stability in the long term.

Issues covered:

1. The concept and essence of the procedure for the financial recovery of an enterprise.

2. A set of measures for the financial recovery of the enterprise.

3. The role of the manager in the implementation of measures for the financial recovery of the enterprise.

The concept and essence of the procedure for financial recovery of an enterprise

Recognition of an enterprise as insolvent, with an established diagnosis of probable bankruptcy in some time period, is the basis for the implementation of financial recovery procedures.

Methods of financial recovery are developed for a specific enterprise and depend on the current situation at the enterprise and, above all, on the depth and stage of the economic (financial) crisis.
It is possible to determine at what stage of crisis or insolvency an enterprise is located by assessing its financial and economic condition (options of which were discussed in previous lectures). Depending on the chosen option, prompt diagnosis or a more complete study can be carried out to identify the causes of the crisis. But regardless of which option was applied, based on the results of the analysis, a crisis situation at the enterprise can be presented:

– as a stage of financial instability, manifested in mismatch of financial flows and deterioration of the balance sheet structure;

– a hidden stage of bankruptcy (insolvency), manifested not only in a mismatch of financial flows and deterioration of the balance sheet structure, but also in an increase in liabilities, the emergence of chronic insolvency, which is accompanied by a decrease in the production and market potential of the enterprise and the presence of signs of social bankruptcy.

Financial recovery is a voluntary or compulsory procedure carried out at the micro level of an enterprise in order to compensate for the regular lack of funds for its current activities, restore the solvency of the enterprise and pay off obligations.

The criteria for choosing methods of financial recovery can be the following groups of indicators:

1st group. Indicators characterizing external signs of insolvency:

– current ratio;

– coefficient of provision with own working capital;

– coefficient of severity of overdue obligations.

If an enterprise has external signs of insolvency, general and operational recovery methods should be applied.

2nd group. Indicators characterizing the efficiency of enterprise management:

– product profitability:

– return on assets;

– return on equity;

– presence of losses.

A debtor enterprise that has unsatisfactory indicators of the second group is subject to local measures to improve its financial condition.

3rd group. Indicators characterizing production and market potential:

– state of production and sales of products (volume of products produced and sold, their competitiveness);

– state and use of production resources (number, labor productivity, capital productivity, depreciation rate of fixed assets, structure of current assets, turnover of current assets).

A set of measures for the financial recovery of an enterprise

The full range of measures for the financial recovery of an enterprise includes the implementation of general, operational, local and long-term methods. The algorithm for choosing methods for the financial recovery of an enterprise is presented in Fig. 8.1.

1. General methods of financial recovery

General methods of financial recovery are formed on the basis of a preliminary assessment of the financial condition of the enterprise. The peculiarity of these measures is that they can be used both at an enterprise in crisis conditions and in conditions of successful functioning in order to maintain the achieved results or improve them.

First of all, financial managers need to pay attention to whether the enterprise has enough funds to carry out current activities. For this purpose, an analysis of the sufficiency of funds is carried out (the difference between the current income and expenses of the enterprise), strict cost control is established, including measures to save current costs are introduced, and it is possible to replace the manager.

Positive results of general methods of financial recovery can be achieved through the development of effective measures to manage the cash flow of an enterprise, the formation of cash funds and control over them rational use, coordination of financial relations that arise between business entities in the process of money movement.

2. Operational methods of financial recovery

If, based on the results of a preliminary assessment of the financial condition, external signs of insolvency are revealed (unsatisfactory results of current liquidity ratios, the provision of own working capital and the severity coefficient of overdue liabilities), then in order to eliminate external factors of insolvency (bankruptcy), it is necessary to bring these ratios to standard (recommended) values. For this purpose, operational methods of financial recovery are being implemented (Fig. 8.1).

Rice. 8.1. Algorithm for choosing methods for financial recovery of an enterprise

The main objective of these methods is to restore solvency by: improving the payment calendar (a document reflecting the flow of funds according to the timing of their receipt and use); regulation of the level of work in progress; transfer of low-turnover assets (illiquid) to high-turnover (liquid) ones; restructuring of accounts payable; restructuring of accounts receivable.

Local methods of financial recovery

If the results of a preliminary assessment of the financial condition of the enterprise are unsatisfactory, there are external signs of insolvency and ineffective management of the enterprise’s activities is noted, then under these circumstances, in addition to the previous methods of financial recovery, it is necessary to additionally include the development and implementation of local methods of financial recovery.

At this stage, the following measures are being implemented: suspension of penalties for overdue accounts payable, ensuring sufficiency of financial resources to cover newly arising current obligations, gradual repayment of old debts, restructuring of the enterprise, sale of excess high-current assets, development of opportunities to attract additional internal sources of financing, including through the sale of excess assets, reducing costs to the minimum acceptable level.

The purpose of local events is to ensure a stable financial position of the enterprise in the medium term (up to 1.5 years), to increase the efficiency of enterprise management, which should be manifested in a stable flow of revenue from the sale of products, works, services, and a sufficient level of asset liquidity (up to recommended values), in increasing product profitability to 3–5%.

Long-term methods of financial recovery

If the results of a preliminary assessment of the financial condition are still unsatisfactory, the enterprise has external signs of insolvency, the ineffectiveness of management of the enterprise’s activities is confirmed and unsatisfactory results are noted for a group of indicators characterizing production and market potential, a decision must be made to implement full complex financial recovery, i.e., in addition to those previously mentioned, it is necessary to additionally carry out long-term methods of financial recovery.

Long-term methods of financial recovery are aimed at attracting additional investments in order to create a stable financial base for the enterprise.

The purpose of their implementation is to ensure a stable financial position of the enterprise in the long term for more than 1.5 years, by creating an optimal balance sheet structure and financial results, stability of the enterprise’s financial system to adverse external influences.

Long-term methods of financial recovery are: active marketing in order to find a promising market niche, search for strategic investments, changing assets for new products.

Thus, depending on the level of crisis manifestations and the financial and economic state of the enterprise, measures to overcome the current situation are selected. If the crisis does not yet have a deep financial and economic character, then sometimes measures that localize one or another type of crisis are sufficient (elimination of conflict, restoration of the socio-psychological climate of the team, saving on current expenses, etc.). At the first signs of a financial and economic crisis, the situation worsens. In these cases, for some enterprises, it is sufficient to take measures for financial recovery, such as general and operational ones, which can be carried out during the normal operation of the enterprise. Whereas in more serious circumstances, the mobilization of all personnel and the creation of crisis groups (groups of crisis managers) are required, the main task of which is the development and implementation of measures to localize and bring the enterprise out of crisis situations.

The role of the manager in the implementation of measures for the financial recovery of the enterprise

Enterprises play a huge role in overcoming crisis manifestations at the micro level. business qualities both an individual manager and a group of managers united in a special team “crisis group”.

The functions of an individual manager and a crisis group are different. The priority position in a crisis is occupied by the anti-crisis response team, since it is the main generator of ideas for developing management decisions aimed at localizing the crisis. Individual local managers become the conductor of proposed activities in the work collective, and therefore their main qualities become organizational abilities.

In conditions of economic (financial) crisis, the main area of implementation of anti-crisis measures is

– these are financial relations, financial resources and final financial results. Therefore, financial management comes to the fore in the implementation of anti-crisis measures for financial recovery, and in the crisis group and locally - the financial management manager, his intuition and experience.

Financial management is the process of managing cash flow, funds, cash and financial resources of an enterprise engaged in business activities.

In the system of problems solved by financial management, we can highlight:

– the state of funding sources (the feasibility of raising borrowed funds and the efficiency of using your own);

– capital investments and assessment of their effectiveness;

– working capital management (optimal amount of working capital and its structure);

– financial planning.

The functions of a financial manager are:

– ensuring the balance of material resources and capital in each specific period of time;

– effective management of the enterprise’s cash flow;

– formation of funds of funds, including the identification of promising directions for the selection of sources of financing;

– making long-term investment decisions and the appropriate use of financial resources.

The financial recovery of an enterprise is not limited to the effective activities of financial managers; it is only one of the components in achieving its goals. A certain impetus to the financial (economic) effect can be given by marketers, lawyers, human resources managers (lower and middle management) and other categories of specialists and employees who do not have the right to independently make financial management decisions. Therefore, the organization and management of the total number of personnel of a crisis enterprise (sometimes replete with force majeure circumstances of various nature) requires the involvement of qualified specialist managers of a high intellectual and organizational level with:

– entrepreneurial type of thinking;

– the ability to convince or even force subordinates to carry out management decisions (by willpower);

– high organizational activity (internal energy).

Of no small importance is the head of senior management (top manager). The position of senior manager obliges to anticipate crisis situations and organize measures to prevent or prevent them. In a situation where a crisis is inevitable, the manager’s task is to mobilize available labor and financial resources. In this case, one of effective means increasing the manageability of the personnel of a crisis enterprise is the “team principle” of construction, the essence of which is to transform the personnel of a crisis organization into a single family with rational delegation of functions. According to D. Lewis, it is not recommended for a manager to delegate functions such as: planning the main project; selecting a team of project performers and monitoring its work; stimulation, evaluation and reward of team members.

In a situation where the financial recovery of a debtor enterprise is carried out as a compulsory measure (as part of a bankruptcy procedure appointed by an arbitration court in order to restore its solvency and pay off debt), the administrative manager is approved simultaneously with the issuance of a ruling on the introduction of financial recovery by the arbitration court. Responsibilities and rights, which are regulated by the relevant articles of the Law Russian Federation No. 127-FZ dated September 27, 2002 “On insolvency (bankruptcy).”

The responsibilities of the administrative manager include:

– maintaining a register of creditors’ claims and convening a meeting of creditors;

– consideration and provision of the results of the report on the progress of the financial recovery plan and the debt repayment schedule to the meeting of creditors (creditors’ committee);

– monitoring the timely fulfillment of current claims of creditors, the progress of the financial recovery plan, including the debt repayment schedule;

– execution of other provided Federal law, responsibilities.

The administrative manager has the right:

– demand from the debtor’s manager information about the debtor’s current activities and take part in the inventory if it is carried out;

– coordinate transactions and decisions of the debtor, provide information to creditors about these transactions and decisions;

– apply to the arbitration court with a petition to remove the manager or accept additional measures to ensure the safety of the debtor’s property, as well as to cancel such measures;

– submit to the arbitration court on its own behalf demands for the invalidation of transactions and decisions, as well as for the application of the consequences of the invalidity of void transactions concluded or executed by the debtor in violation of the requirements of this Federal Law.

Security questions

1. What is the purpose of the financial recovery procedure?

2. Name the methods of financial recovery.

3. What criteria does a manager use when choosing methods of financial recovery?

4. What activities are implemented within the framework of general (operational, local and long-term) methods of financial recovery?

5. Name the main problems solved by financial management in the context of financial recovery.

6. Who is given the authority to make final financial decisions in the event of a forced financial recovery procedure?

Production potential - personnel, number, productivity, depreciation of fixed assets, indicators of the efficiency of use of fixed production assets and other current and non-current assets; market potential - the total capacity of the product market, the enterprise’s share in the market for its products; social bankruptcy - the inability of an enterprise to meet its obligations, violation of the regularity of deliveries as a result of disruptions in the production cycle and other factors leading to a severance of economic ties and forcing partners, counterparties, and competitors to consider the enterprise as a potential bankrupt.

Lecture 8. Development and implementation of a financial recovery plan for an enterprise

Issues covered:

1. Basic provisions for developing a plan for the financial recovery of an enterprise.

2. Features of the measures of the financial recovery plan in the process of implementing procedures for declaring an enterprise bankrupt.

3. Requirements for the development and implementation of a financial recovery plan.

9.1. Basic provisions for developing a financial recovery plan for an enterprise

For quite a long period of time, a business plan was understood as a program containing the information necessary to create a business and make a profit if this program is implemented, or a program for implementing an investment project in a completely prosperous (financially stable) enterprise. In the 90s of the last century, the business plan received a slightly different information focus. A business plan began to be viewed as a document containing a plan for implementing activities, the main objectives of which were to increase the competitive advantages of enterprises and the financial recovery of insolvent or weakly solvent enterprises.

A business plan is a document that defines the main trends in the activity of an enterprise and a system of systematically organized activities aimed at achieving its goals.

In turn, a financial recovery plan is a description of various financial recovery strategies. It allows you to determine the main areas of work and their expected overall effectiveness.

Users of the financial recovery business plan can be the following categories of entities:

1) the enterprises themselves that have real losses and/or enterprises classified as insolvent;

2) creditors or investors.

If a business plan is drawn up for the first category, then it should record the results of the crisis period and reflect the actions that must be taken for the purpose of financial recovery, for example, a marketing plan, production plans or work schedules, etc.

If the users of the business plan are the second category of subjects, then in this case the business plan must contain information that is attractive when choosing objects for investment or lending (by investors or creditors, respectively).

It is recommended to develop a financial recovery plan taking into account the Standard Structure of the Financial Recovery Program for Insolvent Organizations, Appendix 2 to Order No. 497 of the Ministry of Economy of Russia and the Order Federal service of Russia on financial recovery and bankruptcy No. 136 dated November 19, 1999, FSDN order No. 98-r dated December 5, 1994 “On approval of the standard form of a financial recovery plan (business plan), the procedure for its approval and methodological recommendations on developing financial recovery plans.”

These regulatory documents outline the main sections of the financial recovery plan. However, some of its sections may be deleted or, on the contrary, new ones may be added due to the specifics, scale and activities of the enterprise. In addition, in contrast to the business plan for creating an enterprise, the financial recovery plan for an insolvent enterprise may include one or more business plans for individual innovations or for individual newly created production business units.

A financial recovery plan is an effective tool for planning financial, economic, technical and managerial measures to reform an insolvent enterprise in accordance with market needs. Its main goals are to restore solvency and increase the competitive advantages of the debtor enterprise ( this definition The financial recovery plan applies mainly to an insolvent enterprise undergoing arbitration proceedings. However, almost all provisions for the formation of this plan are also valid for enterprises that are not in the arbitration process).

The financial recovery plan performs the following functions:

– used to develop and implement a plan to restore solvency and competitive advantages in the market;

– is a tool with which creditors, investors and other users of the plan can assess the current and future financial condition of the enterprise, the reliability and validity of planned activities, as well as monitor the process of its implementation;

– is the main document necessary to attract investment in production;

– allows you to create an image of a stable enterprise based on advertising material and proposed measures for the financial recovery of an insolvent enterprise;

ensures the involvement of all personnel of the enterprise in coordinated actions to reform it, which serves as an additional guarantee of the effectiveness of these actions.

The functions of the enterprise financial recovery plan listed above do not exhaust their entire list, but indicate the importance of this document and its significant role in reforming insolvent enterprises and improving the country’s economy.

Features of the measures of the financial recovery plan in the process of implementing procedures for declaring a debtor enterprise bankrupt

Exploring the scope of application of the financial recovery plan in anti-crisis management, it should be noted that it can be developed at the stages of both pre-trial rehabilitation and monitoring of financial recovery and external management, i.e. as part of the procedure for declaring the debtor enterprise bankrupt. And if the goal of plans developed at different stages of crisis management is the same - restoring the solvency of the enterprise and increasing its competitiveness, then the content of financial recovery plans at these stages of crisis management is different.

At the stage of pre-trial reorganization, the owner of the enterprise, in case of financial problems, in accordance with the Law “On Insolvency (Bankruptcy)”, is obliged to take preventive measures to prevent its bankruptcy, which can be formulated in terms of financial recovery and are associated mainly with reorganization (providing financial assistance ) enterprises by creditors or other investors under certain conditions. At this stage, measures for financial recovery, as a rule, do not differ from decisions made by a manager in a normally functioning and solvent enterprise and imply:

1) registration of title documents for real estate objects and their assessment;

2) receiving financial support from investors, including the state (rehabilitation);

3) attracting investments, including by issuing securities;

4) search for new types of activities, new products and sales markets;

5) curtailment of unprofitable production;

6) leasing of unused buildings, premises and land plots;

7) sale of excess fixed assets, including equipment, non-productive fixed assets, unfinished construction projects;

8) reducing the cost of products and services;

9) improving the quality of products (services);

10) improvement of the enterprise management system;

11) retraining of personnel.

If financial problems in the enterprise are temporary and can be eliminated, then the implementation of the above measures will make it possible to financially improve the enterprise and normalize accounts payable. If the measures taken at the first stage did not give positive result, the second stage – observation – comes into force.

At the “observation” stage, the temporary manager, in accordance with the Law, is obliged to analyze the financial condition of the enterprise and make proposals for restoring its solvency.

According to the Law, the purpose of analyzing the financial condition of the debtor enterprise at this stage is to determine the adequacy of the property owned by the debtor enterprise to cover legal costs and the costs of paying remuneration to arbitration managers, as well as to determine the possibility or impossibility of restoring the solvency of the debtor enterprise.

Considering that the data obtained as a result of observation will be used by the arbitration court to decide on the future fate of the enterprise, these proposals must be deeply reasoned, justified and presented in the form of a document reflecting the financial condition of the enterprise. The actions of the management of the enterprise to restore the solvency of the enterprise and the timing of measures for financial recovery are best stated in the form of a plan for the financial recovery of the enterprise.

At the “observation” stage, the plan may include: the measures that were outlined above; additional measures for the financial recovery of an insolvent enterprise:

1) reorganization of the enterprise (in the form of merger, spin-off or accession) subject to the conclusion of a settlement agreement;

2) corporatization of the enterprise;

3) sale of ineffective blocks of shares and interests in authorized capitals other enterprises;

4) re-profiling of the enterprise;

5) optimization of the number of personnel in accordance with the actual production program, etc.

At the second stage of the procedure for declaring a debtor enterprise bankrupt (financial recovery), in accordance with the Law, the debtor's management body must develop and implement a financial recovery plan and a schedule for repayment of accounts payable. The plan and schedule must be approved by creditors and approved by the arbitration court. At this stage, the administrative manager is called upon to monitor the progress of the implementation of the listed documents and inform creditors and the arbitration court about this.

At the third stage, “external management,” the Law requires the arbitration manager to develop a plan for the external management of the enterprise, the second part of which is a plan for the financial rehabilitation of the insolvent enterprise. The approval of this external management plan has important legal consequences for the insolvency practitioner and future fate enterprises. If the plan is approved by the meeting of creditors, then the external manager continues to work in his position and implements this plan. If the plan is not approved, then there is a basis for removing the arbitration manager from office and replacing him, as well as stagnation of the crisis state of the enterprise for an indefinite period.

The solvency of an insolvent enterprise during the period of external management is considered restored if there are no signs of insolvency, i.e., by the end of the period of external management, the debtor enterprise acquires the ability to:

– satisfy the claims of creditors, taking into account interest accrued during the moratorium period;

– fulfill obligations to pay mandatory payments for a period of at least three months;

– make current tax payments, public services, wages, etc.

To repay accounts payable with penalties and fines, as well as interest accrued during the period of external management on the “frozen” debt, the debtor enterprise is given six months after the period of external management.

So, the external manager faces two main tasks:

1) organize the activities of the insolvent enterprise in such a way as to be able to pay creditors, the budget and extra-budgetary funds for current payments (for the entire period of external management);

2) accumulate in the enterprise’s account the funds necessary to pay off the accounts payable (including obligatory accounts payable) available at the time of the introduction of external management within six months after the end of the external management period.

The need to solve the above problems determines the composition and content of the financial recovery plan at the stage of external management, which can include all the measures formulated above for the first three stages of crisis management - pre-trial rehabilitation, financial recovery and monitoring.

In addition, it is additionally possible to implement the following measures to reform the enterprise:

1) inventory of property and liabilities;

2) audit;

3) formation of a new management team;

4) financial analysis, identification and control of existing (including hidden) financial flows;

5) implementation of a marketing system at an insolvent enterprise;

6) development and implementation of an optimal production plan in accordance with the results marketing research;

7) release of new products (services) that are in demand on the market;

8) restructuring of the enterprise in accordance with the new production program (without the use of reorganization procedures);

9) creation of a new enterprise management system;

10) restructuring of receivables and payables of the enterprise;

11) review of existing lease agreements;

12) search for new sources of investment;

13) implementation of a financial management system at the enterprise (including subsystems of optimal tax planning and saving the current costs of the enterprise);

14) replacement of assets;

15) sale of the enterprise.

The implementation of the above measures allows the external manager to ensure payment of the current costs of the enterprise and accumulate funds to cover accounts payable.

The period during which these activities are planned to be carried out is usually 18 months. It is determined mainly by the period of external management for which the court appoints an external manager. For large enterprises, the deadlines may be extended.

Requirements for the development and implementation of a financial recovery plan

When drawing up and implementing a financial recovery plan, it is necessary to be guided by the principles, which represent a set of basic requirements for the development and implementation of the plan.

1. The targeted nature of the development and implementation of a financial recovery plan. When developing and implementing a plan, it is necessary to remember the main goal facing the manager. For example, during the period of external management of an enterprise, the main goal of the external manager’s activity is to restore the solvency of the enterprise. This principle assumes that all planned measures for financial recovery and activities for their implementation should be aimed at restoring the solvency of the debtor enterprise, and not other goals.

2. The principle of adequacy. It means the maximum approximation of the planned activities to the real socio-economic and financial conditions of the functioning of the debtor enterprise. To implement this principle, an in-depth analysis of the financial and technical-economic condition of the enterprise, its financial flows is carried out, and on this basis the above measures for financial recovery are selected. Sometimes, to restore solvency, it is enough to adjust the previous marketing policy of the enterprise.

3. Systematic approach to plan development. This principle involves considering the debtor enterprise as a complex socio-economic system that has various subsystems of activity: legal, social, financial, technical, economic, etc. Therefore, when developing a plan, it is necessary to provide for measures that will improve the health of individual subsystems of the debtor enterprise.

4. Structural principle. It assumes the presence of at least three mandatory sections in the plan. These are sections characterizing the current and future state of the enterprise, and a section in which financial rehabilitation measures necessary to achieve the planned future state of the enterprise are formulated.

6. Team principle of development and implementation. It assumes that the development and implementation of the plan should be carried out by a team of professional consultants together with the managers of the debtor enterprise. Only in this case will there be a real financial recovery of the enterprise.

The section does not contain all the principles for developing a financial recovery plan, but only the most important of them; however, these requirements are basic for obtaining a meaningful and reliable plan, as well as a successful result from its implementation.

Security questions

1. What is a business plan?

2. What are the goals and functions of a business plan for the financial recovery of an enterprise?

4. At what stages of declaring a debtor enterprise bankrupt is a plan for the financial rehabilitation of the enterprise developed?

5. List the requirements for the development and implementation of a financial recovery plan.

Lecture 9. Composition, structure and content of the enterprise financial recovery plan

Issues covered:

1. Composition and structure of the enterprise’s financial recovery plan.

Composition and structure of the enterprise financial recovery plan

The composition and structure of the financial recovery plan are mainly influenced by the scale of the enterprise and the scope of its functioning. At the same time, based on the goals of the plan, namely: restoring solvency, increasing competitive advantages, paying off accounts payable, maintaining efficient operations, the financial recovery business plan (as in the document) should reflect:

1) programs for the survival and development of the enterprise;

2) a plan for carrying out reorganization procedures;

3) organizational processes of enterprise management in a crisis or before its onset;

4) justification for the need and possibility of providing financial support to the enterprise.

According to the order of the FSDN dated December 5, 1994 No. 98-r “On approval of the standard form of a financial recovery plan (business plan), the procedure for its approval and methodological recommendations for the development of financial recovery plans,” the standard form of a financial recovery plan includes:

1) general characteristics of the enterprise;

2) brief information on the financial recovery plan;

3) analysis of the financial condition of the enterprise;

4) measures to restore solvency and support effective economic activity;

5) market and competition;

6) activities in the field of marketing;

7) production plan;

8) financial plan.

Time has made a number of adjustments to the standard form. These adjustments are of a recommendatory nature, but they allow the content of the document to be more widely disclosed and reflect in it both the main problems of the enterprise and ways to solve them. One of the options for a plan for the financial recovery of enterprises is proposed by the President of the Foundation for Assistance and Support of Anti-Crisis Management G.B. Yun. The advantage of the form proposed for consideration over the standard one is that it is compiled on the basis of not only an analysis of literature and regulatory documents, but also many years of practical experience of its author in the development and examination of financial recovery plans for enterprises. Below is the general structure and composition of the proposed version of the financial recovery plan for large and medium-sized enterprises (for small enterprises, the number of sections may be reduced). The approximate number of pages is indicated in parentheses for sections.

Title page (1 page).

Section 1. Conclusions (5 pages).

Section 2. General characteristics enterprises (3 pages).

Section 3. Financial and technical-economic condition of the enterprise (7 pages).

Section 4. Assessment of the reasons for the insolvency of an enterprise (3 pages).

Section 5. Financial recovery measures (5 pages).

Section 6. Marketing (products and services, suppliers and consumers, sales, competitors, marketing plan) (15 pages).

Section 7. Production plan (production program, sales plan, need for fixed assets, calculation of the need for workers and wages, cost estimates and calculation of product costs, need for additional investments) (20 pages).

Section 8. Restructuring of an enterprise (including its sale or disposal of its assets) (20 pages).

Section 9. Restructuring of enterprise debt (5 pages).

Section 10. Financial plan (7 pages).

Section 11. Accounts payable repayment schedule (2 pages).

Section 12. Program for implementing the enterprise’s financial recovery plan (10 pages)

Applications.

FRONT PAGE

On title page The name of the consulting (consulting) firm developing the financial recovery plan, the name of the plan and the object of the study, the last name, first name, patronymic and signature of the head of the consulting firm, the seal of the company, the date and place of preparation, contact numbers are indicated.

SECTION 1. CONCLUSIONS

The section provides: the purpose and objectives of the financial recovery plan; reasons for the enterprise's insolvency; brief description accounts payable and receivable; justification of measures to restore the solvency of the enterprise and increase its competitiveness; main parameters of the accounts payable repayment schedule; main provisions of the program for implementing the financial recovery plan.

SECTION 2. GENERAL CHARACTERISTICS OF THE ENTERPRISE

The section provides the following information: full and abbreviated name of the enterprise; registration date, registration certificate number, name of the body that registered the enterprise; postal and legal addresses (with index); subordination of the enterprise (superior body with code SOOGU); types of activities (with OKONH codes); organizational and legal form; form of ownership (with SKFS code); composition of owners with their shares; number in the register of monopolists (federal or local); bank details; Full names, telephone numbers and faxes of managers; brief history creation; product range; production and organizational structure; composition of divisions and branches; size and location of the land plot; list and condition of fixed assets; representative information about the enterprise (sources of profit, stage of development, innovations, qualifications of employees and managers, positive and negative characteristics of the enterprise, differences from similar enterprises on the market).

SECTION 3. FINANCIAL AND TECHNICAL AND ECONOMIC CONDITION OF THE ENTERPRISE

Technical and economic information in this section should contain brief information on various aspects of the enterprise’s activities: composition and parameters of the property complex, assessment of buildings and structures; assessment of the condition of the main process equipment; assessment of engineering and technical services and staffing of the enterprise with specialists; characterization and assessment of production and basic technological processes.

SECTION 4. ASSESSMENT OF THE REASONS FOR THE INSOLVENTITY OF THE ENTERPRISE

The section should contain a qualitative interpretation of the results of the analysis of the financial and technical and economic condition of the enterprise. However, it should be taken into account that in order to analyze the financial position of an enterprise, it is important to highlight, first of all, the dynamics of the main economic indicators, since:

firstly, for planning the trajectory of the financial condition of an enterprise, its current economic indicators are of greatest importance;

secondly, the analysis of retrospective series of economic indicators in modern Russia loses its meaning as the period under review increases due to the rapid change in economic conditions. It is difficult and sometimes impossible to ensure comparability of data across years.

Consequently, in this section it is necessary to pay special attention to the analysis of the qualitative reasons for the deterioration in the financial condition of the enterprise, in order to subsequently reasonably answer the question: what should be done to overcome the crisis?

To study the initial phenomena that give rise to the crisis state of enterprises, it is necessary to analyze the main factors (internal and external) influencing the financial condition of a business entity and identify signs of a crisis state.

SECTION 5. FINANCIAL RECOVERY EVENTS

The section presents a list of measures to restore solvency and support the effective economic activity of the enterprise, an analysis of the proposed measures and conclusions about the effectiveness of the proposed measures. For each type of event, it is necessary to indicate the timing of their implementation and reflect the internal financial reserve of the enterprise received from the proposed events, which can be used to restore its solvency.

In essence, this section is a strategic plan for the main directions of development and transformation of the organization, with the goal of:

– increase in the organization’s revenue, including its monetary component;

– reduction of production costs;

– optimization of commodity and cash flow management;

– creating conditions for timely settlement of obligations;

– improving the quality of products and their compliance with market demand.

The most important areas of change may include:

1) streamlining the organization’s assets in order to create an effective market structure of assets by carrying out:

– enterprise inventory;

– transfer of social and non-production facilities to local authorities;

– formation of independent (subsidiary) organizations on the basis of object data;

– sale, rental, conservation of unused parts of property, fixed assets, etc.;

– acquisition of new and reconstruction of old property for production purposes;

2) intensification of production through:

– application of advanced technologies, mechanization, automation of production;

– increasing the level of use production capacity;

– optimization of the process of organizing labor and production;

3) improvement of the management and production structure:

– change of management of the enterprise;

– optimization of the number of personnel and retraining of personnel;

– improving ways to stimulate enterprise personnel;

– implementation of marketing and financial management systems;

– reorganization of the management structure and creation of new divisions and services;

– separation of individual production facilities into independent business units and branches, etc.;

4) formation of financial sources:

– creating a favorable investment image of the organization, attracting investments;

– collection of receivables;

– state financial support;

– optimization of taxation;

– use of the authorized and reserve capital of the enterprise, accumulation funds, social sphere, etc.;

5) streamlining the organization’s debt:

– restructuring and repayment of debt to budgets, extra-budgetary funds, commercial creditors;

– revision of contractual obligations with creditors (restructuring of debt to private creditors);

– conclusion of a compensation agreement;

– debt conversion by converting short-term debts into long-term loans or long-term mortgages;

– optimization of accounts receivable, etc.

SECTION 6. MARKETING

The section outlines the results of assessing the prospects of the market or alternative markets for the company's products, access to which will allow the company to restore its solvency by changing the type or quality of products. The characteristics of the marketing policy give an idea of the measures planned by the enterprise in the field of promoting products produced or proposed for release on product markets.

It is advisable to carry out a set of works to formulate a marketing plan and have characteristics in the following areas:

– market (information about the industry, main and auxiliary markets and their segments, market capacity and size, prices for similar products);

– competition (information about business entities operating in the market, analysis of information, conclusions about the type of market for a given product, information about legislative restrictions on market penetration);

– marketing strategy, including product strategy (policy regarding the development and sales of old and new products, assortment), market penetration strategy (sequence of actions), development strategy and formation of distribution channels, pricing strategy, demand generation and sales promotion strategy, enterprise growth strategy (intensive, integration, diversification);

– distribution channels (formation of “producer-consumer” distribution channels);

– manufactured products (type, size, weight, service life, patent situation).

SECTION 7. PRODUCTION PLAN

A production plan is a comprehensive planning document that includes the following subsections:

– production program in natural units of measurement for the existing capacity of the enterprise and taking into account the volume of products that the market segment can “absorb”;

– sales plan for the company’s products;

– calculation of the need for fixed assets required for the organization production process;

– calculation of resource requirements for the production program;

– calculation of the needs of workers and their wages;

– cost estimates and calculation of product costs;

– the enterprise’s need for additional investments.

SECTION 8. ENTERPRISE RESTRUCTURING

The process of enterprise restructuring is often carried out together with an external management procedure. Restructuring may not only be the most in an efficient way reforming an enterprise that does not require large investments, but is also the only way to increase its solvency and avoid bankruptcy proceedings and liquidation of the enterprise.

We can distinguish the following ways of financial recovery of enterprises without investment through restructuring:

– property;

– accounts payable to budgets of all levels;

– accounts receivable;

– share capital.

Article 57 of the Civil Code of the Russian Federation allows the use of mergers, acquisitions, spin-offs and separation procedures for restructuring to form new, more financially stable legal entities to replace those that are in crisis.

SECTION 9. RESTRUCTURING THE DEBT OF THE ENTERPRISE

The section contains information about all types of debt of an insolvent enterprise and the possibilities of its reduction or liquidation. Methods for restructuring an enterprise's debt are repayment, write-off, deferment, installment plan, sale, exchange, conversion or other procedures, one way or another related to its financial recovery.

The typical debt structure of most enterprises includes the following types of debt:

1) budgets of all levels;

2) off-budget funds;

3) state reserve;

4) loans commercial banks;

5) enterprises of the fuel and energy complex;

6) enterprises providing transportation and communications;

7) related enterprises, etc.

Restructuring of the debt of an insolvent enterprise to the federal budget is carried out in accordance with the resolutions of the Government of the Russian Federation on debt restructuring, for example, with the resolution of the Government of the Russian Federation “On the procedure and timing of the restructuring of accounts payable of legal entities for taxes and fees, as well as debt on accrued penalties and fines to the federal budget" dated September 3, 1999 No. 1002 with amendments and additions. Data normative document It has been established that interest is paid quarterly on amounts of debt on taxes and fees, which are calculated based on the amount of outstanding debt on the date of payment of interest.

Accepted management decision on the restructuring of debt on mandatory payments must contain a debt repayment schedule in accordance with the installment plan provided to the organization.

SECTION 10. FINANCIAL PLAN

A financial plan is a document that reflects the future needs for equity and borrowed capital for the implementation of the planned plan for the financial rehabilitation of an insolvent enterprise (in this case, the amount of equity and borrowed capital of the enterprise on the balance sheet as of the last reporting date, i.e. at the end of zero ( base) year, a possible increase in equity and borrowed capital is added in the process of implementing the financial recovery plan).

When drawing up a financial plan, the following is carried out:

– forecast of financial results of the enterprise based on the “production plan”;

– determination of the need for additional investments and formation of sources of financing;

– formation and discounting cash flows;

– drawing up an aggregated form of the forecast balance;

– calculation and analysis of the final financial indicators of the enterprise.

SECTION 11. REPAYMENT SCHEDULE OF ACCOUNTS PAYABLE

The schedule is drawn up in strict accordance with the Law “On Insolvency (Bankruptcy)”, Article 134 “The order of satisfaction of creditors’ claims,” which indicates the order and priority of satisfying the claims of creditors. It includes all types of debt of the insolvent enterprise, the amount of debt and the timing of its repayment.

SECTION 12. FINANCIAL RECOVERY PLAN IMPLEMENTATION PROGRAM

The result of all preparatory work for the financial recovery of the enterprise is the development of a comprehensive program for the implementation of the financial recovery plan. This program involves combining all the information received on a financial recovery plan, as well as determining the goals, performers, means, methods and conditions for its implementation.

For each enterprise, the program for implementing a financial recovery plan will have a strictly individual character, their features and differences. For convenience G.B. Yoon suggests using the following structure for implementing a financial recovery plan:

1) program objectives;

2) list and characteristics of subprograms (legal, production, management, financial, etc.), types and content of work;

3) timing and stages of implementation of the program and subprograms;

4) responsible executors, services, organizations;

5) volumes and sources of financing;

6) expected final results and effectiveness of program implementation.

Security questions

1. What points should be reflected in the financial recovery plan of the enterprise?

2. List the main sections of the standard form of a financial recovery plan for an enterprise.

4. What is a financial plan for the financial recovery of an enterprise?

5. In what order is the priority given to satisfying creditors’ claims?

CONCLUSION

The theory and practice of crisis management is a relevant area for many enterprises operating in conditions of crises of different nature and depth. Since crisis phenomena are a natural and natural element life cycle of any socio-economic system, the task of managers is not only to master methods of forecasting and overcoming crises, but also to teach how to use the current unfavorable situation to reconstruct the enterprise and improve the quality of its organization.

Summarizing the first part of the lecture course, it should be noted that anti-crisis management includes not only management in the context of an enterprise’s already insolvency, but also the development of preventive measures to prevent bankruptcy.

The second part of the lecture course will summarize the methods and options for restoring the solvency of an enterprise and its financial recovery. Questions on personal, innovative management in times of crisis, quality management as a factor in increasing competitiveness will also be offered for study. It is planned to study in more detail the main legislative document of anti-crisis management, the Law “On Insolvency (Bankruptcy)” of enterprises.

30.1.1. Diagnostics and methods of financial recovery of an enterprise

Indicators of the financial condition of an enterprise are decisive for the formation of a system of measures for its improvement, aimed at bringing it out of a crisis situation. There are two main problems that an enterprise may encounter during its operation: solvency And profitability , the solution methods for which are often mutually exclusive.

Insufficient solvency means that the company is unable (or close to it) to repay both the short-term and long-term debts of the company in a timely manner. Table 30.1 lists some of the main signs emerging insolvency (low liquidity) and possible actions to eliminate them.

Table 30.1.

Signs of enterprise insolvency and possible actions to eliminate them

Signs of insolvency	Actions to eliminate them
Short-term insolvency
Insufficient current liquidity	Transition from short-term to long-term lending. Selling parts non-current assets. Selling part of the inventory and covering short-term debt with this
Insufficient absolute (term) liquidity	Sale of part of inventories, receivables
Lack of own funds	Sale of part of excess non-current assets. Additional share capital investments
Long-term insolvency
Low share of equity in the structure of the enterprise’s balance sheet	Additional equity investments. Sale of non-current assets and repayment of long-term debt. Intensifying the profit reinvestment policy
Large share of long-term loans in the structure of the enterprise’s balance sheet	Debt restructuring (bond issue). Sale of non-current assets and repayment of long-term debt

Choosing one option or another exit from the crisis associated with insolvency will be purely individual in each case. In table only areas of action for financial health improvement enterprises, however, the legality of using any of them requires additional analysis from the point of view of the capabilities of both the enterprise itself and the assessment of the results of such actions.

The financial recovery of an enterprise can be ensured by increasing profitability already invested funds. In Table 30.2. some general recommendations about this. However, in each specific case, a set of measures aimed at resolving the crisis situations of the enterprise has its own specifics.

Table 30.2.

Ways to increase profitability

Signs of a problem	Ways to solve it
Low return on assets	Sale of excess assets. Increased productivity. Accelerating the turnover of all types of funds. Reduced inventory levels
Low return on equity	Attracting additional (relatively cheap) credit resources (issue of bonds)
Low profitability of turnover	Pricing optimization. Reducing costs for production and sales of products.
Decline in the attractiveness of shares for investors (low profitability)	Abandonment of the profit reinvestment policy

Methods of financial recovery are developed for a specific organization and depend on the current situation at the enterprise and, above all, on the depth and stage of the economic (financial) crisis.

It is possible to determine at what stage of crisis or insolvency an enterprise is by assessing its financial and economic condition. Depending on the chosen option, prompt diagnosis or a more complete study can be carried out to identify the causes of the crisis. But regardless of which option was applied, based on the results of the analysis, a crisis situation at the enterprise can be presented:

- as a stage of financial instability, manifested in mismatch of financial flows and deterioration of the balance sheet structure;
- a hidden stage of bankruptcy (insolvency), manifested not only in a mismatch of financial flows and a deterioration in the balance sheet structure, but also in an increase in liabilities, the emergence of chronic insolvency, which is accompanied by a decrease in the production and market potential of the organization and the presence of signs of social bankruptcy Bocharov V.V. Management of cash flow of enterprises and corporations. - M.: Finance and Statistics, 2012. - P. 154..

Depending on the stage of insolvency or instability, financial recovery measures can be either voluntary or compulsory.

The measures are voluntary in nature when the decision to introduce financial recovery measures is considered, accepted and implemented at the organizational level.

Compulsory in nature, in the case when measures for financial recovery are introduced at the enterprise as determined by the arbitration court with the appointment of an administrative manager, i.e., as part of the procedure for declaring the debtor organization bankrupt. The purpose of introducing a financial recovery procedure is to give the company the opportunity to restore the ability to meet its obligations.

The full range of measures for the financial recovery of an organization includes the implementation of general, operational, local and long-term methods.

1. General methods of financial recovery.

General methods of financial recovery are formed on the basis of a preliminary assessment of the financial condition of the organization. The peculiarity of these measures is that they can be used both at an enterprise in crisis conditions and in conditions of successful functioning in order to maintain the achieved results or improve them.

First of all, financial managers need to pay attention to whether the organization has enough funds to carry out current activities. For this purpose, an analysis of the sufficiency of funds is carried out (the difference between the current income and expenses of the organization), strict cost control is established, including measures to save current costs are introduced, and it is possible to replace the manager.

Positive results of general methods of financial recovery can be achieved through the development of effective measures to manage the organization’s cash flow, the formation of funds of funds and control over their rational use, coordination of financial relations that arise between business entities in the process of money movement.

2. Operational methods of financial recovery.

3. Local methods of financial recovery.

If the results of a preliminary assessment of the financial condition of the organization are unsatisfactory, there are external signs of insolvency and ineffectiveness in managing the organization’s activities is noted, then under these circumstances, in addition to the previous methods of financial recovery, it is necessary to additionally include the development and implementation of local methods of financial recovery.

At this stage, the following measures are being implemented: suspension of penalties for overdue accounts payable, ensuring sufficiency of financial resources to cover newly arising current obligations, gradual repayment of old debts, restructuring of the organization, sale of excess high-current assets, development of opportunities to attract additional internal sources of financing, including through the sale of excess assets, reducing costs to the minimum acceptable level.

Figure 5. - Algorithm for choosing methods for the financial recovery of an organization Bobyleva A.Z. Financial recovery of a company: Theory and practice. - M.: DELO, 2012. - P. 156.

The purpose of carrying out local events is to ensure a stable financial position of the organization in the medium term (up to 1.5 years), to increase the efficiency of enterprise management, which should be manifested in a stable flow of revenue from product sales.

4. Long-term methods of financial recovery

If the results of a preliminary assessment of the financial condition are still unsatisfactory, the enterprise has external signs of insolvency, the ineffectiveness of management of the organization’s activities is confirmed and unsatisfactory results are noted for a group of indicators characterizing production and market potential, a decision must be made to carry out a full range of financial rehabilitation, that is, in addition to those previously mentioned, it is necessary to additionally carry out long-term methods of financial recovery.

Long-term methods of financial recovery are aimed at attracting additional investments in order to create a stable financial base for the organization.

The purpose of their implementation is to ensure the sustainable financial position of the organization in the long term for more than 1.5 years, by creating an optimal structure of the balance sheet and financial results, and the stability of the organization’s financial system to adverse external influences.

Long-term methods of financial recovery are: active marketing in order to find a promising market niche, search for strategic investments, changing assets for new products.

Thus, depending on the level of crisis manifestations and the financial and economic state of the organization, measures to overcome the current situation are selected. If the crisis does not yet have a deep financial and economic character, then sometimes measures that localize one or another type of crisis are sufficient (elimination of conflict, restoration of the socio-psychological climate of the team, saving on current expenses, etc.). At the first signs of a financial and economic crisis, the situation worsens. In these cases, for some organizations, financial recovery measures such as general and operational, which can be carried out in the normal course of the organization’s work, are sufficient. Whereas in more serious circumstances, the mobilization of all personnel and the creation of crisis groups (groups of crisis managers) are required, the main task of which is the development and implementation of measures to localize and lead the organization out of crisis situations.