Financing for Corporate Debt Restructuring
Debt Restructuring & Refinancing
Debt restructuring, is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its operations.
But while a company may understand that it needs restructuring, it may not know how to go about it, and something this delicate needs an expert who understands what to do, how to do it - and make it into a successful reorganization.
There are benefits to restructuring. You just need the right people to do the job.
It's About Stabilization and Growth
In recent years, due to the financial crisis and more recently the pandemic, banks have become scared and are asking their clients to cut their debts owed to them, the banks. What does that mean? This means that companies have had to put more money into paying back their debt and this creates a crunch not just on the working capital but it also means that they are not able to:
2) Go after new business ventures,
3) Hire new employees, or
4) Invest in research and development (R&D).
As merchant bankers what we offer is financial relief by refinancing existing business mortgages (whether commercial or industrial).
In refinancing the business debt, the outstanding amount can be increased so that working capital can be injected into the company.
The bonus here is that when refinancing a business mortgage, it becomes possible to combine to that funding any outstanding equipment finance loans or leases, which again creates automatic working capital for a company or business.
Restructuring the Debt
By restructuring the business debt, cash-flow can also be improved in several ways, by way of:
1) Refinancing and consolidating the existing businessdebt, which will grant the company a longer amortization period, and/or
2) By injecting equity, which is equal to giving the company a blood transfusion, taking in consideration its actual financial situation and its development for the next 3-5 years.
There are many financing tools that we use in corporate debt restructuring and refinancing transactions in order to create the best-fitting relief structure, such as:
New debt injection
Refinancing with new private, corporate investors
New equity injection
debt for equity swap
... and more.
45 Years of Experience in the International Banking Industry
Experienced Project Financing
Awarded in Orlando's Business Hall of Fame for 12 Years Running
2017 Gamechanger of the Year Award Winner
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