Willis unveils CARES Act optimisation programme

Broker Willis Towers Watson has created a Coronavirus Aid, Relief, and Economic Security (CARES) Act optimisation programme to help companies create liquidity and mitigate balance sheet volatility.

The programme seeks to help companies navigate the CARES Act and realise available stimulus funds before its accompanying benefits expire at the end of this tax year.

Provisions in the CARES Act create an opportunity for companies to generate a stimulus by monetising net operating losses generated in the 2018, 2019 or 2020 tax year. Willis Towers Watson’s programme will help companies realise a net operating loss by leveraging long tail liabilities held on the balance sheet, e.g., workers compensation liabilities, products liabilities, asbestos liabilities and pension liabilities. The WTW approach has additional features to enhance liquidity and to hedge against IRS challenges.

“With filed bankruptcies up 26% in 2020, managing liquidity in today’s COVID-19 economy remains a key strategic objective for many companies,” said Jonathon Drummond, head of casualty broking, North America, Willis Towers Watson. “Our CARES Act Optimisation Programme provides an innovative way to create a cash stimulus today while reducing balance sheet volatility and restoring borrowing capacity under a corporate credit revolver.”