Value destruction and value preservation

The chapter points out how carving out valuable business units from the the troubled company helps preserving value. This can be made either in a judicial procedure like a PAC (Preventive Arrangement with Creditors) or without any procedure. Operational details are explored through real life business cases. The risk of value destruction is high. In this respect we outline some issues related to judicial procedures, such as the economic burden of these very costly procedures, the loss of flexibility that they imply and the stuffy, conservative management style that is often involved.