The bank and its attorneys should coordinate a workout plan that avoids lender-liability issues. Turnover is rampant among key employees. Positions once held by responsible, able, senior personnel are now filled by former lower-level employees. Effective production and financial controls and information systems are lacking. Deliveries and payments to creditors are frequently late.
Communication suffers with customers, suppliers or bankers.
Senior employees leave to work for direct competitors or create their own competing business sometimes with the help of the company s banker. Regulation is lacking to protect safety, business secrets, phones, materials and supplies. Problems are frequently blamed on individuals or entities outside of the company. The company consistently fails to perform as promised. The founder offers information that according to the banker s intuition just does not make sense.