Once the initial stages of a transaction is understood, priority is given to identifying and remedying key pressure points within the company, and reviewing existing debt agreements and other key contractual arrangements with investors. Once this process is complete, the preparation stage can commence.
A debt restructuring services significantly modification made to the debt, operations or structure of a company. This type of corporate action is usually made when there are significant problems in a company, which are causing some form of financial harm and putting the overall business in jeopardy and liquidity distressed. The hope is that through restructuring services, a company can eliminate financial harm and improve the business along with its liquidity. After a debt restructuring, the payments on debt are more manageable for the entity and the likelihood of payment to bondholders increases.
Our expert team will consider the specific elements that are needed to design a consistent debt workout mechanism from the decision to restructure (extension of maturity and/or haircut) to an end point which allows the debtor to exit and start afresh. This will involve moving through receivership and declaring a standstill, a stay of enforcement, capital controls, the verification of claims, the legitimacy of the restructuring process, interim financing and lending into arrears, seniority of loans, cut off dates, and the conclusion of negotiations.
Aatmaiv support to management teams, shareholders, creditors and investors in preparing a concept for restructuring and lead negotiations with the relevant parties, we understand both sides. This is important, as the successful resolution of financial restructuring situations requires in-depth knowledge of the goals and intentions of the other parties involved.