Distress is rarely sudden. It develops gradually — through delayed decisions, capital misalignment, operational drift, or external shocks that expose existing fragility.

Delnor Capital advises on distressed and turnaround situations where realism, control of downside, and disciplined decision-making are essential to preserving value.

Distress is often misunderstood as a liquidity problem. In practice, it is usually a structural problem. Common indicators include:

• weakening cash-flow coverage and covenant pressure,
• capital structures no longer aligned with operating reality,
• erosion of lender or investor confidence,
• governance strain and delayed accountability,
• narrowing strategic options over time.

Addressing symptoms without confronting structure rarely stabilises outcomes.

In distress, capital becomes conditional. Investors and lenders prioritise:

• capital protection over upside,
• governance influence and control rights,
• transparency and speed of information,
• recoverability over expansion.

Understanding this shift is critical. Misreading it often accelerates loss of control.

Turnarounds frequently fail due to:

• delayed recognition of severity,
• denial-driven continuation of prior strategies,
• fragmented stakeholder communication,
• unrealistic recovery timelines,
• capital solutions pursued without operational correction.

Time amplifies risk in distressed situations.