Our company supports corporate companies to restructure their liabilities. Restructuring is the reorganization of companies’ outstanding liabilities. It is generally a mechanism used by companies which are facing difficulties in repaying their debts.
In the process of restructuring, the credit obligations are spread out over longer duration with smaller payments. This allows company's ability to meet debt obligations. 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. This process tries to resolve the difficulties faced by the corporate sector and enables them to become viable again.
1.) Ensure the company has enough liquidity to operate during implementation of a complete restructuring.
2.) Produce accurate working capital forecasts.
3.) Provide open and clear lines of communication with creditors who mostly control the company's ability to raise financing.
4.) Update detailed business plan and considerations
Usually when the business is facing financial pressures, restructuring is a type of corporate action taken that involves significantly modifying the debt, operations or structure of a company as a way of limiting financial harm and improving the business.
1.) The debt restructuring process can be carried out by reducing the interest rates on loans or by extending the dates when a company’s liabilities are due.
2.) A debt restructure might include a debt-for-equity swap, when creditors agree to cancel a portion or all of the outstanding debt in exchange for equity in the company.