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General Director of Kagazy Recycling.
Advisor to CEO of Kazakhstan Kagazy.
Victoria has a degree of Magister of International Relationship from University of Bath, UK
She joined Kazakhstan Kagazy group in 2012, and became CEO of paper and corrugated paper production in 2015.
At the end of 2016 Kazakhstan Kagazy successfully restructured debt by signing a rehabilitation plan with its creditors, among which there are European Bank for Reconstruction and Development, Pension Fund of Kazakhstan, big commercial banks and insurance companies of Kazakhstan. Westland Finance Advisory was engaged in negotiations with creditors and during 10 months intensively mediated and structured a process of debt restructuring. In October 2018. CEO of the company Victoria Gorobtsova issued a statement to the team, advising the the Supreme Court of Republic of Kazakhstan decided to stop bankruptcy procedures agains Kazakhstan Kagazy. It is a great achievement. Westland Finance Advisory has been a part of this success story.
WFA: Victoria, please tell us how you, being a young professional, managed to cope with the situation and win respect from your team?
VG: I started to head the company in am extremely hard condition. Within 2013-2015 period a number of CEOs had been hired and dismissed. Our clients, our colleagues felt a vacuum of power, the decision-making process was at halt or dragged on. Business environment called to cut operational expenses drastically, review our pricing policy, and that one could do only with a strong support of your team. Stability can be reached, actually, even in times of crisis. One must, though, create for employees the atmosphere of confidence in your targets and adhere to the system of common values no matter what happens.
WFA: What is the most challenging task in managing a company in default and how did you manage that?
VG: Keeping a team together and retaining loyalty of colleagues. Unfortunately, when company finds itself in a state of default, people begin to question its future and their own prospects. Hence, it is essential to motivate a management team not only with career opportunities, yet with a solid financial support, because to lose a member of a top team in times of stress may decide an outcome of the entire “battle”.
WFA: What was the biggest challenge in relationship with creditors?
VG: Lack of trust and sceptic attitude. When the second default occurred, the situation was quite ambiguous. Apart from explaining the reasons of default we had to convince creditors that shareholders share the same aims. Furthermore, in a country with developing business environment, it is essential to demonstrate transparency of cash flows.
WFA: Can you tell us about a difference of default in 2011 and 2015?
VG: By definition that the 2015’s crisis was not a first default, it was a consequent one. As I mentioned before, the last one was a more complicated one and made creditors suspicious. At the same time, shareholders and the management team could learn from mistakes during the first default, use experience to achieve common aims and strive to make sure, that that default would become the last one. Mind you, it is not just showing a new financial plan to creditors, it is making sure one can fulfil that plan. These are two things that are not necessarily the same, and not all understand that.
WFA: Could you give some useful advices to companies that negotiate with creditors?
VG: First of all, determine, what kind of relationship you (shareholders, top management) have with creditors. In case no or little trust exists between two camps, for whatever reasons, creditors simply do not wish to achieve a compromise. Then, it is advisable to invite a third party to mediate on your behalf, who could convey your position to creditors and hear what creditors have to say.Secondary, never give up. Quality always turn into quality. After hundreds of negotiations you will eventually reach an agreement.
WFA: How would you grade services of Westland Finance Advisory their contribution to a successful restructuring?
VG: The results are self-evident, we have found a compromise with creditors. In general, professional people, with never ending source of ideas how to find a solution, which is important when you are about to give up. I think we have a made a great team together!
Good luck and patience to all who got into a situation I have been. Everything will turn out good.
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