Founded in 1991 and with over 800 employees today, the Oncos Group is recognized as the 43rd largest and most dynamic employer in Romania, the 10th in the top of Romanian poultry meat producers, and currently in the top 100 companies with Romanian capital.
Oncos is a group of private capital companies, with a main focus on the production and distribution of fresh chicken meat, bread, pastry products and eggs. The trade activity is carried out through a network of retail stores located in 15 different cities and its own warehouse.
The company has 8 active farms and 1 dormant farm, 44 commercial units (stores) and 436 employees.
Causes of distress
Oncos made a series of low-performing investments that required a substantial financial effort, without having a real prospect of recovery. The bank loans attained for this purpose represented approximately 54% of the total debts registered in the debtor's balance sheet, indicating the high dependence on external financing sources.
The Restructuring plan
Oncos’ restructuring plan consisted of a 3600 strategy, relying on the customization and implementation of an appropriate management solution. The plan also took into account marketing, organizational and structural new policies.
Some of the key actions implemented within the plan:
Advantages of the Restructuring
Before and After
*€16,100,000 paid, €8,610,000 transferred to another company, €6,190,000 written off
The success story of Oncos has saved more than 700 jobs (group-wise), with an impact on more than 2,100 people.
When comparing the 2 available scenarios (i.e., restructuring and liquidation), the following key notes should be taken into account: the restructuring plan provided that secured creditors were to be covered in full, by comparison to only 46% which would have been a maximum coverage in case of stopping the company’s activity, placing it into liquidation and selling all its assets.
Employees and tax creditors would have been covered in full in both scenarios, however, the employees got to keep their jobs in the restructuring scenario and tax creditors have gained a healthy contributor.
If we were to reveal the secret of this success story, we must say that this was a team effort supported by a mix between the right approach and a high level of professionalism.
Everything started with a change of mindset, continued with changes in the operations and strategies, and ended with new policies being implemented and more efficient ways of doing business.