Select Page

Debt restructuring

Finance

Financial restructuring is usually combined with debt restructuring, which may involve renegotiation of existing financial exposures or the use of new lending, including bridging loans.

We represent both banks and creditors in processes involving debt restructuring, credit negotiations and capital raising under restructuring conditions.

Debt restructuring always requires negotiation of certain conditions of existing indebtedness, involving in particular:

  • entering into standstill agreements with creditors;
  • execution of intercreditor agreements regulating relationships between creditors, and establishing a uniform approach to the debtor;
  • establishment of additional debt security;
  • introduction of a soft bullet structure (i.e. the payment of interest instalments only);
  • payment of some creditors’ claims and taking over their claims by remaining parties, or waiver of such claims;
  • partial debt-to-equity conversions;
  • partial debt write-downs (‘haircut’).

Kochański & Partners’ role in debt restructuring

  • Bridge financing – we assist clients in structuring loan refinancing transactions.
  • Security – we draft security documents and complete relevant registration and formalities.
  • Negotiations – we assist in negotiations regarding the choice of restructuring scenario and the form and content of associated documentation.
  • Regulatory issues – we suggest methods of debt restructuring while ensuring compliance with relevant banking regulations, including those relating to the credit rating of the borrower.
  • Due Diligence – we perform a due diligence examination of debtors on behalf of lenders to identify the best debt restructuring solutions.

Contact us:

Rafał Rapala

Rafał Rapala

Attorney at Law, Senior Partner, Head of Transactional Practices Group

+48 608 444 650

r.rapala@kochanski.pl