Willis Towers Watson launches product that helps clients create stimulus through the CARES Act

Rhea-AI Summary

Willis Towers Watson (NASDAQ: WLTW) has launched the CARES Act Optimization Program to assist companies in maximizing available stimulus funds from the CARES Act before the benefits expire. This program allows firms to monetize net operating losses from 2018 to 2020, leveraging long tail liabilities such as workers' compensation and pension liabilities. With bankruptcies rising 26% in 2020, managing liquidity is crucial. The program aims to enhance cash flow and reduce balance sheet volatility, providing an innovative financial solution amidst the ongoing challenges of the COVID-19 economy.

Positive

• CARES Act Optimization Program provides a way for companies to monetize net operating losses.
• Helps enhance liquidity and cash flow for companies in financial distress.
• Addresses critical time sensitivity with CARES Act provisions expiring soon.

Negative

• None.

ARLINGTON, Va., Aug. 25, 2020 (GLOBE NEWSWIRE) -- Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, today announced it has created the Coronavirus Aid, Relief, and Economic Security (CARES) Act Optimization Program. The program will help companies navigate the CARES Act and realize available stimulus funds before its accompanying benefits expire.

Provisions in the CARES Act create an opportunity for companies to generate a stimulus by monetizing net operating losses generated in the 2018, 2019 or 2020 tax year. Willis Towers Watson’s program helps companies realize 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 Willis Towers Watson 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 Optimization Program provides an innovative way to create a cash stimulus today while reducing balance sheet volatility and restoring borrowing capacity under a corporate credit revolver.”

With critical provisions of the CARES Act expiring at the end of this tax year, there is a short window of opportunity to realize available stimulus funds.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

Media contact

Ileana Feoli: +1 212 309 5504
ileana.feoli@willistowerswatson.com

FAQ

What is the CARES Act Optimization Program by Willis Towers Watson?

It is a program designed to help companies maximize available stimulus funds by monetizing net operating losses and leveraging long tail liabilities.

How does the CARES Act Optimization Program enhance liquidity?

The program assists companies in generating cash flow by utilizing net operating losses and reducing balance sheet volatility.

What are the benefits of the CARES Act Optimization Program for companies?

It helps companies access stimulus funds, improve cash flow, and restore borrowing capacity under corporate credit agreements.

When do the CARES Act provisions expire?

The critical provisions of the CARES Act are set to expire at the end of the current tax year.

How has the COVID-19 economy impacted liquidity management for companies?

Bankruptcies are up 26% in 2020, making liquidity management a key strategic focus for many companies.