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Debt Restructuring
Disruption in economic activity, coupled with high debt levels, has made borrowers vulnerable to the risk of default and bankruptcy
It is the process of reorganisation of existing debts obligations to the new situation. Debts are provided to corporates , which are based on assumed certain business conditions and repayment structures are finalised based on the projected cash flows. Due to dynamic nature of business these days , borrower face financial challenges and are not able to generate the desired levels of cash flows and struggle to repay the debt obligation as committed to lenders.
In order that the borrower keeps its business floating , Lending financial institutions , creditors often restructure the debt of its borrower , which can be giving more time, step up repayments structure , reduce pricing , conversion of debt to equity , etc or combination of above .Each borrower has different problems and thus requires a solution which is peculiar to resolve the problem faced by a particular borrower .
Debt restructuring Services
We have a team of corporate bankers who have handled numerous debt restrucring transactions for every size of the borrower . Every such situation is different and we have a qualified team to resolve the distress situation.
- We Partner with you to identify the causes of default, liquidity issue ,etc .
- Prepare comprehensive revival plan , which meets borrower’s and lender ‘s objectives , at the same time , its meets central bank’s regulations ( RBI ) .
- Make a detailed presentation to the lenders , justifying the causes of non-repayment and survival of the company after implementation of the debt restructuring plan.
- Examine & Negotiating the terms of the debt restructuring offered by lenders and its impact on the borrower’s business.
- Handholding the borrower during the implementation of the debt restrucuring plan, convents compliances , etc.
- Be a part of the implementation committee and make necessary presentations, information, etc as required by lenders.
Overall, these services can be a valuable resource for borrowers who are struggling with debt. By providing guidance and assistance throughout the debt restructuring process, these services can help borrowers to find a solution that is manageable and sustainable for long term.