Regional Economic Communities

A business and community paradigm which is viable in the long-term – a concept worth living

A heavily indebted company

The senior executives of a regional company are close to giving up on the company because of high debts to the banks. On the other hand, they feel a responsibility for their employees and want them to keep their jobs. The company also fits the criteria of the Regional Economic Community quite well.

The CPO takes over the company, after it has drawn up a plan together with the current executives for paying back the debt of the company and for strengthening its orientation towards a long-term viable way of doing business. The money needed to repay the debts comes from the sale of joint-ownership certificates to private and institutional investors within the region.

Under the umbrella of the CPO and free from the burden of debt, the previous chief executives can begin to restructure the company step by step towards a long-term viable way of doing business according to the agreed plan. The jobs can thus be kept. Profitability can increase further through synergies with other companies of the CPO. The surplus which is to be expected from this is distributed among the certificate owners of the CPO.

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