Given the constant change and uncertainty recently, many companies will find themselves with reduced profitability and cash generation through no fault of their own. After reacting to market changes the business model may remain sound, but the current capital and debt structure may hinder future development. There may be limited incentive for management or equity providers to invest further, and debt funders may be concerned about their position. In such circumstances it may be appropriate to consider a consensual restructure.
Many businesses took on more debt to survive the effects of the coronavirus pandemic. But for businesses whose profits have fallen, repaying these debts may not be possible. This article explains the six steps of capital and debt restructure.
In order to show your stakeholders that you have too much debt and the wrong capital structure, you will need to prepare and provide some key information. This articles explains what information you will need, why you need it, and how you can prepare it.
Each of the stakeholders in your business will expect you to consider some intermediate steps before you approach them for help. This article explains some of the things to try and questions to ask before you turn to your stakeholders for support.
Most stakeholders share a common goal: for the business to perform well. But if you’ve become burdened with too much debt, individual interests can break this alignment. Here we explain how to realign stakeholder interests during a capital and debt restructure.
In any restructuring process, it is important to keep all stakeholders motivated to complete the deal. Maintaining this consensual process can require diplomacy, negotiation, and challenging conversations. Here’s how we can help maintain a consensual restructure.
Capital and debt restructuring processes can achieve a great deal and solve a lot of issues. But you may need to pursue other more formal restructuring processes as well. This article explains your restructuring options, and when to consider each one.
