Amrit Khosa authored an article, “Five Tips for Investor Directors in the Zone of Insolvency,” which is featured in a recent issue of Commercial Insolvency Reporter. The article outlines his top five tips for investor-appointed directors who may have to navigate complexities that arise when companies have financial difficulties.
Amrit explains, “There are distinct advantages to investors sitting on the boards of their portfolio companies, not least their ability to look after their investment and work toward maximising their return. The human capital provided by investor directors can be invaluable in driving efficiencies and creating growth opportunities.”
“However, when nearing or in the ‘zone of insolvency’ the interests of the investors and the company can diverge. Investors will want to limit losses. Some may want to write off the investment completely and withdraw support regardless of whether that will precipitate insolvency. Others may be willing to provide further investment to salvage the business but often on more stringent terms.”
The full article is featured in Commercial Insolvency Reporter, Volume 34, No. 6 (Aug. 2022).