My client was a municipal enterprise responsible for social and utility infrastructure in the district. It was a stable but highly regulated business, with strict obligations to the budget, the local population, and counterparties.
By the time I joined the project, the enterprise faced a critical liquidity shortage: the cash gap exceeded 100 thousand US dollars, tax debt had formed, and there was a real risk of account blocking. If the existing payment schedule remained unchanged, the enterprise risked failing its tax obligations, delaying salary payments, and effectively stopping operations. For an enterprise that supports vital district functions, this was not acceptable.
I carried out an express audit of the financial position: I analyzed cash flows, the obligation schedule, the structure of revenue contracts, and the real ability of the enterprise to generate operating cash flow. Based on this, I prepared several scenarios: one with a one-time repayment of tax debt and another with phased repayment. The analysis showed that the first option would effectively stop operations and reduce future tax revenues.
After that, I personally negotiated with the tax authorities, presenting a detailed financial picture and explaining why a one-time payment of tax and fee debt was impossible. I proposed an installment format in which the enterprise could keep operating, while the budget would receive regular and predictable payments.
As a result, I managed to agree a two-year installment plan for the tax debt, with a realistic payment schedule. This made it possible to close the cash gap, integrate the tax burden into the financial cycle of the enterprise, and restore solvency without stopping operations.
The enterprise kept settlements with key counterparties, paid salaries on time, and continued to perform its socially important functions without disruption.
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