A global U. S. corporation faced a deteriorating situation with a joint venture partner in Europe. It was, in its view, owed US $35 million by its JV partner and it anticipated additional losses of US $55 million by fiscal year-end. The partner corporation demanded that the U. S. corporation absorb 100 percent of the losses, relinquish its ownership interest in the JV and pay the partner corporation an additional US $7 million.
The U. S. corporation asked Ms. Gray to assess the current business situation between the partners, find out whether a mutually attractive restructuring of the JV would be possible, and to decide whether the U. S. corporation’s European team had the capability and the resources to handle the situation effectively.
As a result of Liz’s advice, both the team and the strategy toward the JV partner were restructured dramatically. The joint venture situation was resolved favorably for the U. S. corporation.