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Case
-
Reference no. 119-0070-1
Authors:
Norma Ortiz Silva (Universidad de Los Andes); Carlos Jaramillo (IESA); Rosa Gonzalez (Universidad de Los Andes)
Published in:
2019
Version:
17-Dec-2017
Revision date:
07-Aug-2019
Length:
25 pages
Data source:
Field research
Notes:
To maximise their effectiveness, colour items should be printed in colour.

Abstract

Carlos Alberto de Jesus was hired by Fabricato's Board of Directors to implement a strong restructuring plan that would allow the company to become viable in the medium term. Factors beyond the company's control, such as the revaluation of the Colombian peso, the growth of the Chinese textile industry exports, the smuggling of textiles that have flooded the Colombian market, money laundering, and the stock market bubble created around the price of Fabricato’s share, seemed to have jeopardized a growth strategy underpinned by the export of high-end threads and fabrics. The DeLima group, which had become the company’ majority shareholder upon receiving Fabricato shares in payment, after the Interbolsa bankruptcy proceedings, had made explicit its intent of not injecting additional resources into the business. For this reason, any recovery strategy would have to be financed through internally generated funds and through the highly reduced suppliers’ credit. If Carlos Alberto were to be unable to implant a rescue plan under these restrictive conditions, the company would have to enter into liquidation.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Topics

Financial modeling; Financial analysis; Value drivers; Financial indicators

Setting

The events covered by this item took place in 2008-2013.

Geographical setting

Region:
Americas
Country:
Colombia
Location:
Bogota

Featured company

Company name:
Fabricato
Employees:
1001-5000
Turnover:
COP 436218000000
Type:
Public company
Industry:
Textil

Featured protagonist

  • Carlos Alberto de Jesus (male), CEO

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