Business assessment
An objective view of the operating position, because restructuring proposals stand or fall on whether the underlying business can support the revised schedule.
Debt restructuring
Restructure today. Build room for tomorrow.
Debt taken on sound assumptions can become mismatched to a business that has changed. Restructuring is the work of realigning obligations with present reality.
ObjectiveSustainable servicing
MethodLender coordination
ConstraintLender consent is required
What restructuring is
Changing the shape of an obligation, not escaping it.
Restructuring renegotiates the terms of existing debt so that it can be serviced sustainably. That might mean extending tenor, revising the repayment schedule, adjusting security, consolidating multiple facilities, or replacing existing debt with a differently structured arrangement.
What it does not mean is reducing what is owed. Lenders agree to restructuring where they conclude the restructured position is more likely to be repaid than the existing one. That is the entire logic of the exercise, and it explains what a credible proposal must demonstrate.
Businesses restructure for different reasons. Sometimes it is pressure. Often it is simply that debt raised for one phase no longer fits another — short-tenor facilities funding long-payback assets, or facilities accumulated across years that would be better consolidated.
What we work through
Six components of a restructuring exercise.
Existing debt structure
Mapping every facility: tenor, pricing, security, covenants, guarantees and inter-creditor position. This is frequently more complex than expected.
Cash-flow analysis
What the business can genuinely service, month by month, tested against a slower scenario rather than a hopeful one.
Lender coordination
Engaging existing lenders with consistent information — particularly important where multiple lenders hold different security positions.
Repayment restructuring
Building a revised schedule that is realistic for the business and defensible to a credit committee.
Capital alternatives
Assessing whether refinancing, consolidation or additional capital produces a better outcome than restructuring in place.
When it is worth considering
Circumstances in which restructuring is often the right response.
- Repayment obligations no longer align with the actual cash conversion cycle
- Short-tenor facilities are funding assets with a longer payback period
- Multiple facilities have accumulated across lenders and would be better consolidated
- Covenants are being met with diminishing headroom each quarter
- A change in the business has altered the assumptions the debt was raised on
- Pricing on existing facilities is materially above what the current profile would attract
How the process runs
What a restructuring exercise involves.
Timelines depend heavily on how many lenders are involved and how complete the information is at the outset.
01
Position mapping
A complete picture of facilities, security, guarantees and inter-creditor arrangements before anything is proposed.
02
Serviceability modelling
Establishing what the business can sustainably service, tested against a downside rather than a plan.
03
Proposal design
Constructing a revised structure that works operationally and can be defended commercially to each lender.
04
Lender engagement
Presenting the proposal with consistent information across all lenders, which matters greatly in multi-lender situations.
05
Negotiation
Working through lender requirements, which commonly include additional security, monitoring or promoter contribution.
06
Documentation & implementation
Coordinating revised documentation and establishing the reporting discipline that follows.
Key considerations
What restructuring realistically asks of a business.
01
Lender consent is not automatic
Every element requires agreement. Lenders assess whether the restructured position genuinely improves their recovery prospects.
02
Expect to give something
Additional security, promoter contribution, tighter monitoring or revised pricing are commonly required in exchange.
03
Credit records may be affected
Restructuring can be reflected in credit reporting, with implications for future borrowing. Understand this before proceeding.
04
Multi-lender situations are harder
Different lenders hold different security and different views. Coordination becomes the central task.
05
It must be operationally credible
A revised schedule the business cannot meet either fails quickly or damages the lender relationship permanently.
06
Take legal advice
Restructuring carries legal consequences for the company, its directors and its guarantors. Qualified legal advice is essential alongside financial advisory.
Debt restructuring outcomes depend entirely on lender agreement and cannot be assured by any adviser. This page is general information, not legal, insolvency or financial advice, and independent professional advice should be taken.
Questions
Questions we are asked about this
Generally no. Restructuring changes the terms — tenor, schedule, security, sometimes pricing — rather than the principal. Arrangements involving a reduction in the amount owed sit in a different and more formal category, typically requiring specialist insolvency and legal advice.
They agree when the restructured position appears more likely to be repaid than the existing one, and when the proposal is credible and well-evidenced. They decline when neither is true. Preparation materially affects which of those applies, but no adviser can commit a lender to anything.
Not necessarily. Plenty of restructuring is proactive — consolidating facilities, extending tenor to match asset life, or refinancing at better pricing. It becomes distress-driven only when it is left until the position is already strained.
Refinancing replaces existing debt with new debt, often from a different lender, and is generally preferable where the business is strong enough to attract it. Restructuring renegotiates in place and is the route where refinancing is not realistically available. We assess both before recommending either.
Related
Explore related solutions
Most funding conversations touch more than one route. These are the ones most often considered alongside this page.
Obligations that no longer fit the business?
Share the current facility position and recent financials. We will tell you whether restructuring, refinancing or something else is the more realistic route.