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’).