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Debt Restructuring

A public or private company experiencing cash flow issues can improve liquidity and return to profitability by restructuring it’s financial obligations. The implementation of the appropriate debt structure can assist to prevent financial decline and restore confidence in the company’s ability to thrive.

Debt restructuring can take various forms, including the renegotiation of existing debt. Transferring to a new debt structure which is more closely aligned with a company’s long-term strategy may provide equal, if not greater, benefit to a business, whether financially solid or in distress.

Effective execution of a tailored debt restructuring programme promotes positive cash flow, eliminates onerous debt servicing costs and allows a company to plan for growth with confidence.

Reducing the burden of debt

Renegotiation or reorganisation of a company’s outstanding debt can be achieved in a number of ways to relieve financial hardship:

  • Extension of the repayment period
  • Decrease of interest rates and debt servicing costs
  • Transfer to an alternative debt product more appropriate to the business model

Lender negotiations are key to the process alongside a detailed understanding of the company’s financial situation and its long-term strategic objectives.

Gaining access to alternative debt products, such as invoice funding or asset-based finance, can inject new life into a distressed company. These alternatives to traditional bank lending can offer flexibility and agility to react quickly to changing markets, by providing an ongoing source of working capital which is aligned to the working capital cycle of the business, or by providing a cash lump sum.

Our debt restructuring services

We offer a supportive service for corporate entities wishing to restructure their debt and have professional contacts with both traditional and alternative lenders around the UK and international markets. Our service includes: 

  • Analysis of company liquidity and financial viability
  • Assessment of restructuring options
  • Plan formulation using solutions tailor-made to the business
  • Discussions and negotiations with stakeholders to obtain support, where necessary, and manage expectations
  • Effective delivery of the planned debt restructuring strategy
  • Assistance with business/lender relationships
  • Monitoring of company performance post-restructure to identify variances with expected results

Improved cash flow immediately introduces new possibilities for companies that want to grow or have become stagnant under the burden of debt. This is the fundamental of debt restructuring – leveraging value according to a company’s business model, for example whether that is a strong sales ledger or wholly-owned assets of value.

Case Studies

A proven track record is the best way to demonstrate our strength and depth of expertise.

Industries

An up-to-date review of key industries, taking an in-depth look at topical and current issues within each sector.

Contact one of our BTG Advisory specialists to discuss our services in further detail

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