Build whole routes with attainable operating changes

Construct the alternatives appropriate to the debtor and its creditors: an agreed extension, reduced or converted claims, new money, operating restructuring, asset or business sale, and an available formal or exit route. The alternatives may combine these moves. Their labels are insufficient; state the payments, asset use, financing and claim treatment that make each route different.

For continuation, obtain a credible operating plan with the changes needed to restore supportable cash. Include transition spending, customer and supplier response, maintenance and later investment. Forecast what happens if the changes arrive late or achieve less than intended. The financial Method tests those consequences; it does not invent a turnaround capability merely because the spreadsheet needs higher margins.

For a sale, distinguish asset disposal from sale of an operating business. Establish which assets and contracts transfer, which liabilities remain, the sale process, achievable timing and net proceeds. An orderly sale and an immediate forced realization can have different values and costs. FIN.7 supplies the matching valuation premise; FIN.9 supplies retained-business and divestment consequences. Do not add a business value and the assets already supporting that value.

For exit, include the cash costs and remaining obligations of stopping, disposal, employee or supplier settlement where applicable, taxes and the procedure itself. The relevant alternative is the feasible exit under the actual conditions, not a frictionless book-value liquidation. A continued loss-making route needs comparison with what can actually be recovered and preserved by another route.