Distressed investors seeking to avoid Insolvency Act appointments are increasingly turning to private individuals possessing the expertise and experience necessary to lead a turnaround. While the specific position will be different in each case, the role of such individuals is known generically by the US term of chief restructuring officer (CRO).
CROs appointed to UK companies rarely enjoy the benefit of a formal moratorium, given that they are likely to have been appointed as an alternative to a formal process. Accordingly, CROs must bring with them the credibility and communication skills crucial to persuading key stakeholders to hold their positions throughout the restructuring.
