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TMA Alert by Sheon Karol, TMA New York City

All borrowers may be required to provide 13-week cash flows

Lenders are considering requiring all borrowers to supply 13-week cash flows. Restructuring professionals should take immediate steps to address this development. Our suggestions include:

(1) Educate the business owners:
(a) It is not sufficient to prepare a mechanical 13-week cash flow. A cash flow that merely provides reporting may satisfy a lender but the borrower is better served by a cash flow that is a strategic tool for cash management.
(b) Particularly in the current crisis, businesses should prepare 13-week cash flows even absent a lender requirement. The cash flow provides an “early warning” system and enables (both healthy and stressed) companies to plan and allocate resources efficiently.

(2) Partner with accountants:
(a) Accountants will have access to both the business owners and the financial information.
(b) Restructuring professionals can supplement the skill sets of the accountants. This is a “win” for all clients, accountants and restructuring professionals.


Sheon Karol is a managing director of The DAK Group and recipient of the “Boutique Investment Banker of the Year (2018)” Atlas award. DAK’s Special Situations Group, which he leads, provides hybrid investment banking and restructuring services. Sheon has served TMA in a number of capacities including as a Vice President of the NYC Chapter.

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