rossings as an independent advisory has gained a significant role in the restructuring of companies in cases of financial distress. As a truly independent expert advisor, we are a natural partner to represent your interests, as shareholders, as an executive board or as a supervisory board in situations where modifications to the capital structure are most needed. Especially in cases of financial distress, we can negotiate, on your behalf, with banks on new terms or on amendments on existing contracts.
Working closely with our M&A colleagues of Crossings Advisory and capital raising experts, we are well positioned to assist you in raising capital, restructuring existing debt or in supporting you with divestitures to strengthen the balance sheet.
Restructuring existing Debt and Equity
When your company is experiencing financial distress and liquidity problems, refinancing its obligations can be an approach to gain more flexibility in the short term. Entering into direct negotiations with creditors to reorganize the terms of the debt payments is an intensive process when, at the same time, your focus on business transformation is required. We handle these critical renegotiation processes for you, which may result in for instance a debt-for-equity swap, bondholder haircuts or informal debt repayment agreements, in order to restore liquidity so you can continu operations.
Loan agreement amendments - waivers, consent requests and extensions
Loan agreement amendments typically deal with the reason for amending the loan agreement, legal issues like guarantees or third party security, common conditions for lenders to amendments to take effect and who bears responsibility for the costs involved in making such amendments.
Waiver requests generally arise in the context of events of default. Consent requests generally arise when a borrower wants to take a course of action which is prohibited under the current finance agreement. Whether in your specific situation it is the best option to reschedule debt to extend maturity dates, request a waiver of debt or renegotiate other aspects of the credit facility, we help you to proactively come up with the best solution.
We combine the experience of our M&A and restructuring professionals of Crossings Advisory in advising either buyers or sellers of distressed assets and companies. Throughout the entire process, including identification of buyers, participation in court proceedings and in closing the deal, we support you in order to unlock value in challenging situations.
We help you in working with a highly levered acquiror or target, managing the bankruptcy process, performing a valuation that can withstand court examination and managing inherent conflicts of interest among different stakeholders.
In all activities mentioned above, managing stakeholders is critical, from the start. All approaches, whether creative or simple and straight forward, require a process of engaging with the key stakeholders and maintaining the relationships. As an independent party we are well positioned to support.
Would you like to learn how we can support you in restructuring capital? We’d be happy to connect with you and discuss a potential way forward, no strings attached.