Two examples of our turnaround work McKinsey RTS has worked in more than two dozen countries across five continents and in most industries to bring clients back to financial health. Industrial producer Challenge. An integrated global industrial producer faced sharply declining prices and rising energy and compliance costs. Its parent company would soon cease funding its losses and intended to sell the business. There was an immediate need for radical performance transformation. Turnaround approach. McKinsey RTS led a turnaround of the business that addressed all cost and revenue levers and included RTS professionals serving on an interim basis in key roles. Impact. As a result of the turnaround, the company was able to generate more than $250 million in incremental cash flow, keep all existing sites in operation, and see its incumbent management team emerge energized and poised to lead the company to renewed growth. The parent company ultimately chose to retain its ownership of the business. US energy company Challenge. A US energy company was facing an acute liquidity challenge, driven by a large debt load and declining revenues as a result of surprisingly low natural-gas prices leading to low power prices. In addition, regulatory requirements created the need for significant capital upgrades. These challenges, combined with a complex capital structure, led the company to a Chapter 11 filing Turnaround approach. McKinsey RTS guided the client through the Chapter 11 process, working with company management to evaluate all aspects of the company’s operations. By cutting general and administrative costs, restructuring procurement contracts, developing lower-cost approaches to operations and maintenance, and redefining capital plans, we helped the company adopt a new operating strategy more appropriate to its situation Impact. The enterprise value of the company, as measured by market valuation of the company’s debt, doubled through the Chapter 11 process. Due to cash-flow improvement and operational actions, the company was able to avoid raising any new liquidity through the Chapter 11 process, preserving significant enterprise value.