In this episode of Shed The Debt, host Pattie Lovett-Reid sits down with Richard Goldhar, Licensed Insolvency Trustee at Goldhar & Associates, to discuss how businesses can navigate economic challenges, assess financial viability, and explore restructuring options. From evaluating financial statements to understanding debt restructuring, Goldhar explains how business owners can make informed decisions in uncertain times.
Navigating Economic Uncertainty: Insights from Richard Goldhar
📢 Podcast: Shed The Debt
🎙 Host: Pattie Lovett-Reid
👤 Guest: Richard Goldhar, Goldhar & Associates
📌 Topic: Economic Uncertainty and Business Restructuring
When Should a Business Consider Restructuring?
Many business owners struggle with whether to tough it out or shut down. Goldhar outlines a four-step process to assess financial health and determine if restructuring is necessary:
- Review Financial Statements – Look at the past three years’ balance sheets and income statements to gauge financial trends.
- Analyze Costs & Liabilities – Pay close attention to revenue trends, employment costs, cost of goods sold, and interest expenses.
- Consult Professionals – Speak with accountants and lawyers to understand financial risks and legal obligations.
- Assess Lease Obligations – Personal guarantees on leases can expose business owners to personal financial risk.
By reviewing these factors, business owners can determine whether they should seek restructuring options or continue operations as usual.
How Does Restructuring Work?
Many business owners are unaware that restructuring doesn’t mean closing down—it’s about reorganizing debts and operations to stay afloat. Goldhar explains that businesses have several restructuring options:
- Corporate Proposals – Businesses can propose new repayment terms to creditors while continuing operations. If creditors approve and the court endorses the plan, the business remains under the owner’s control.
- Receivership & CCAA Proceedings – Larger companies (with debts exceeding $55 million) may undergo formal restructuring under the Companies’ Creditors Arrangement Act (CCAA) or receivership.
- Debt Negotiation – Business owners can work with a licensed insolvency trustee to renegotiate payments with banks and creditors.
The key takeaway? Restructuring allows businesses to keep operating while reducing financial strain.
The Role of Banks in Restructuring
Goldhar explains that banks expect some business loans to go unpaid, which is why they set aside loan loss provisions. Because of this, banks are still willing to lend to businesses after restructuring, though initial borrowing costs may be higher.
Goldhar & Associates is on the preferred list of restructuring professionals for some banks. This means that if a business is struggling, the bank may refer them to Goldhar’s team to explore restructuring options.
Why Business Restructuring Is Becoming More Common
With major companies like Hudson’s Bay recently filing for bankruptcy protection, Goldhar sees a rising trend in business restructuring.
- In the past 18 months, Goldhar & Associates has handled an increasing number of large-scale restructurings involving debts over $5 million.
- Many business owners still carry government debt from COVID-19 and are struggling to recover.
- In some cases, shutting down and restarting fresh would have been the better financial decision.
Despite these challenges, Goldhar remains optimistic:
“When one door closes, six more open.”
His advice? If you’re feeling financial stress, don’t wait until it’s too late—seek professional advice early.
Final Thoughts
Economic uncertainty doesn’t have to mean the end of a business. By proactively reviewing financial statements, consulting professionals, and exploring restructuring options, business owners can navigate financial challenges and position themselves for long-term success.
📢 Listen to the full episode of Shed The Debt here: Youtube
💬 Have questions about business restructuring? Contact Goldhar & Associates today.