Vicenza (Italy), 3 December 2008. Zeno Soave, the founder of Socotherm Group, a large supplier of pipe coating and insulation services both for the oil & gas industry and the deep water sector, and Cristiano Battelli, the Group Chief Restructuring Officer, were considering how to fix the company’s financial and organizational problems. The financial crisis that broke out in 2007 and some errors in past investments, caused a lack of liquidity that affected the group operations. In fact, the consolidated operating income was expected to be considerably negative in 2008. In addition, a major instalment of a huge amount of debt borrowed by the holding company was coming due. Therefore, the two men were considering how to reorganize the company in order to immediately prevent a potential crisis, that would be caused by an almost certain loan covenant breach. This case is particularly useful in corporate finance and restructuring courses. It offers the opportunity to analyze the operational and financial soundness of a distressed global company, to practice the concepts of unused debt capacity, and to consider different restructuring strategy from a going-concern perspective