Despite all health and safety measures required to be adopted given the circumstances, from the corporate and financial point of view, the managers facing strong cash flow reductions due to the high drop of their activity due to the COVID-10 crisis must adopt all possible measures to protect their cash position and reduce costs and expenses to the largest possible extent (including wages reductions and employees suspensions –employees termination is temporarily suspended in Argentina-), procure access to all supportive measures adopted by the government (including adhesion to moratoriums) and procure access to credit, if available.
If possible, the management should negotiate, to the largest possible extent, all contractual, commercial and financial obligations, trying to avoid the need for filing for insolvency proceedings. However, if the adoption of those measures is not sufficient and the business still continues facing financial and/or operative problems, then the managers should consider the filing for insolvency proceedings in order to avoid liability (please see question 2 above).
