Our corporate debt restructuring involves the reorganization of companies’ outstanding liabilities. It is generally a mechanism used for companies which are facing difficulties in repaying their debts. In our process of restructuring, the credit obligations are spread out over longer duration with smaller payments. This allows our client’s ability to meet debt obligations.
Also, as part of process, some creditors may agree to exchange debt for some portion of equity. It is based on the principle that restructuring facilities available to companies in a timely and transparent matter goes a long way in ensuring their viability which is sometimes threatened by internal and external factors.
- Ensure the company has enough liquidity to operate during implementation of a complete restructuring
- Produce accurate working capital forecasts
- Provide open and clear lines of communication with creditors who mostly control the company’s ability to raise financing
- Update detailed business plan and considerations
- Cash management and cash generation during crisis
- Impaired Loan Advisory Services
- Retention of corporate management in the form of “stay bonus” payments or equity grants
- Sale of underutilized assets, such as patents or brands
- Outsourcing of operations such as payroll and technical support to a more efficient third party
- Moving of operations such as manufacturing to lower-cost locations
- Reorganization of functions such as sales, marketing, and distribution
- Renegotiation of labor contracts to reduce overhead
- Refinancing of corporate debt to reduce interest payments
- A major public relations campaign to reposition the company with consumers
- Forfeiture of all or part of the ownership share by pre-restructuring stock holders (if the remainder represents only a fraction of the original firm, it is termed a stub)
- Improving the efficiency and productivity through new investments, R&D and business engineering.