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
The Crunch
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:
1) Expand,
2) Go after new business ventures,
3) Hire new employees, or
4) Invest in research and development (R&D).
Financial Relief
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:
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Debt rescheduling
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New debt injection
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Refinancing with new private, corporate investors
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New equity injection
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debt for equity swap
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... and more.
If you believe your business could benefit from restructuring and re-organization, we'd like to be part of the solution. Contact us and see how we can assist you.
45 Years of Experience in the International Banking Industry
Experienced Project Financing
Engineer
Awarded in Orlando's Business Hall of Fame for 12 Years Running
2017 Gamechanger of the Year Award Winner
Contact Us
Are you a consultant looking for new funding sources for your clients?
We always appreciate the interest garnered by the high-caliber service we have been providing for 40 years. While we do not have agents representing us in any countries of the world, we still get most of our business from banking consultants, introducers, and brokers worldwide.
If you are a broker, banking consultant, or professional introducer, we welcome the opportunity to do business with you; and in that respect, if you are interested to submit any business refinancing projects that require funding, we invite you to fill out the contact form below.