Certain mistakes reliably deepen financial distress: delaying recognition of the problem, prioritising favoured creditors, incurring new debt without prospect of repayment, withholding information from lenders and taking unilateral action without advice. The pattern is that each is an understandable human response that the law and the market punish. This report sets out the mistakes that worsen financial distress in your chosen jurisdiction and industry: the framework for recognising and avoiding them, the scenarios in which they typically occur, the warning indicators that one is about to be made, hedged ranges for the additional harm they cause, the controls that guard against them, and the point at which counsel and restructuring advisers should intervene to prevent missteps.
Reference material for informed readers, not advice.
