Business Debt Restructuring

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If a company cannot repay its debts, it may be forced into bankruptcy. This can have severe consequences for the company, including the loss of assets, the closure of businesses, and the loss of jobs. 


Debt restructuring can help avoid this by giving the company time to restructure its finances and business operations. Get in touch with the qualified debt consultants at Transition Consulting today to improve your company’s financial situation. 

Different Types of Debt Restructuring

There are different types of debt restructuring that a company may undergo, including:

Debt-for-Equity Swap

The company offers its creditors a portion of its equity to forgive some of the debt. This can be an attractive option for creditors, as they will receive something of value in exchange for their debt. This type of restructuring can also raise new equity investment in the company.

Payment Plan

The company agrees to make regular payments to its creditors over a period of time to pay off the debt. Payment plans may be structured in various ways, such as increasing the amount of each payment overtime or making payments more frequently.

Debt-for-Assets Swap

A company offers its creditors a portion of its assets to forgive some of the debt. This can be an attractive option for creditors, as they will receive something of value in exchange for their debt.


How Does Debt
Restructuring Work?

Debt restructuring involves modifying the terms of one or more debt obligations to make them more manageable for the debtor. A company undergoing debt restructuring will negotiate with its creditors to change the terms of the debt agreement.

This may involve extending the repayment period, reducing interest payments, or converting debt into equity. The company’s financial situation and the preferences of the creditors will dictate the terms of the restructured debt agreement.

Once the terms of the restructured debt agreement have been agreed upon, the company will make the required payments to its creditors according to the new terms. This may involve making regular payments over a period of time or making a lump sum payment.

Why Choose Transition Consulting

There are several risks associated with debt restructuring, including an inability to meet required payments and creditors not agreeing to the terms of the agreement.

At Transition Consulting, we provide expert advice on negotiating with creditors, developing new repayment plans, and improving financial forecasting. Our team of experienced consultants can help your company navigate the complex debt restructuring process, strengthen its financial position, and avoid default.

Connect with Us Today

The team at Transition Consulting has over 50 years of experience advising companies on debt restructuring. We will work with you to understand your company’s financial situation and objectives.

We understand that debt restructuring can be a complex and sensitive process, and we’ll handle your case with the utmost professionalism and discretion.

If you’re considering debt restructuring for your company, don’t hesitate to contact us today to arrange a free consultation.

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