Financial solutions dedicated to the relaunch of companies facing temporary difficulties, through Turnaround and Credit Opportunities services

Turnaround activities are dedicated to supporting and enhancing the value of companies facing temporary difficulties, which, from a credit classification perspective, typically fall into the UTP (Unlikely To Pay) category, and helping them bounce back.

The term “turnaround” indicates in general terms the process of restructuring a company that is going through a crisis phase, typically characterised by economic-financial imbalances caused by declining profitability or operational inefficiencies, and of helping it bounce back. In such cases, the involvement of specialised partners makes it possible to implement credible business plans, strengthen the financial structure and put the company back on a sustainable growth path.

The scope of Credit Opportunities extends to solvent companies and covers a wider and more varied spectrum of disruption situations: difficulties in accessing “traditional” credit (e.g. first refinancing after a restructuring plan), need to redesign the capital structure for financial reasons (e.g. development plans, maturity walls) and/or governance.

The common thread in these areas is the creation of tailor-made solutions from a solid understanding of the underlying industry, built on business due diligence conducted in-house. It is not merely credit management, but rather a proactive approach to regenerating corporate value.

The Turnaround & Credit Opportunities team provides strategic leverage to support industrial companies in the most sensitive periods of their development, from managing financial crises to capital restructuring and accelerating growth paths. It is a highly specialised field that combines financial , legal and industrial expertise, aiming to generate value even in complex or seemingly precarious contexts.
These steps are part of an integrated vision, synergised with capital markets instruments, securitisation and factoring solutions. From this perspective, the support offered is built on long-term relationships and a tailor-made approach, rather than being one-off.

Turnaround

In the context of a Turnaround , when a company goes through a phase of financial stress, it is essential to ensure that it has effective tools to stabilise the situation and launch a path towards bouncing back. Among the most used solutions are super-senior loans, often given a super-priority pursuant to Art. 22 of the Business Crisis Code , which offer immediate liquidity and a priority repayment to the lender, reducing the risk of the transaction and fostering business continuity. Purchasing single-name receivables with renegotiated terms, a strategy to improve the company’s debt position and support financial restructuring, goes hand in hand with this. These tools are mainly applied in contexts governed by Italian bankruptcy law – such as negotiated settlements, restructuring agreements or certified plans – and are mainly intended to manage claims classified as Unlikely To Pay (UTP) in companies facing significant financial difficulties.

Senior Financing

Not all companies facing a transition period are in crisis: some go through transformation or growth phases that require new financial resources but, for various reasons, are unable to have full access to traditional bank credit. For these businesses, generally classified as healthy (Stage 1 or Stage 2), targeted solutions are available such as new finance (like bridge financing, for example), which makes it possible to cover immediate liquidity needs pending the completion of transactions outside the ordinary course of business — including mergers, acquisitions or capital increases — even in highly leveraged circumstances. This is complemented by refinancing, for example to exit restructuring agreements, which are useful to reorganise the company’s financial structure and support the launch of new industrial development plans.

Special Situations

In some cases, companies need finance instruments that are more sophisticated and combine operational flexibility with return potential. Among the most widely used solutions is convertible financing, which allows the creditor to transform the loan into equity when certain conditions are met, thus integrating debt and equity elements. Mezzanine financing, on the other hand, is a hybrid form positioned between senior debt and equity: it allows capital to be raised without immediately diluting ownership and is particularly suitable for supporting growth in the presence of intermediate risk. We also offer other quasi-equity instruments, designed for companies in a bounce-back phase with complex capital structures, which require tailor-made solutions to restore balance between their financial soundness and development goals.

Complex situations require targeted, timely and highly customised measures. illimity’s Turnaround & Credit Opportunities Division takes a bespoke approach, carefully selecting financial instruments and specific solutions according to each company’s needs. The ability to adapt quickly to the changing operational and financial environment is crucial to ensuring the success of the bounce-back process and to maximising long-term benefits.

Beyond the effectiveness of the measures taken, the involvement of specialised investors such as illimity generates a positive impact on the entire ecosystem: preserving business continuity means protecting employment, maintaining production chains and safeguarding shareholder and stakeholder value. In this sense, the turnaround is an engine for rebooting the real economy, not just a financial lever.