Debt restructuring

It’s not uncommon that debt arrangements entered on the assumption of one set of forecasts are inappropriate when the actual business outcome differs. Should this happen, debt should be pro-actively restructured or refinanced to make servicing costs appropriate to support continued trading. And that’s when our debt restructuring experts can help.

What does this service provide?

If you need to restructure or refinance your debt, here’s some of the support our specialists can offer:

  • We can negotiate with your current lenders to seek repayment holidays, changed amortisation profiles, facility extensions and possibly instrument conversions.
  • If suitable arrangements cannot be reached with your current lender, we can arrange more suitable replacement capital with a lender better suited to your changed needs.
  • We can manage the process of negotiating a more suitable debt solution either with your existing or a new lender during a time that many owner managers find extremely stressful.

Important things to consider

  1. When a business finds itself in difficulties, it can seem daunting to approach your lenders for fear of unintended consequences. Early intervention is always better.
  2. If a borrower is under financial distress that it prevents timely repayment on a loan, debt restructuring of refinancing is to the benefit of all parties and protects the business and the lender.
  3. Full debt refinancing can offer opportunities for additional liquidity compared to restructuring of existing debt. A borrower can leverage a newly obtained loan with better terms to pay off a previous loan and often end up with additional capital to invest in the business.
  4. In the extreme, insolvency or administration can be used to restructure the entire business. Insolvency can have significant costs and challenges associated and business owners should consider debt restructuring or refinancing first if the root cause of issues is an inappropriate financing structure.

How much will the service cost?

Our fees are designed to ensure that we are totally aligned with your objectives. We have designed, over years of experience, a balance between commitment fees and success fees that makes sure that we are “in it together”. Our objective is for clients to always see value in our fees that significantly exceeds cost.

What should I do next?

If you would like Shaw & Co to help you with debt restructuring, please contact one of our corporate finance experts shown on this page, or click the arrange a meeting button.

“If you find that your business is in cash flow difficulties, there is a lot of capital in the market to support you and the situation is far from helpless. However, knowing which institutions to go to and how to deal with them is critical in setting up the debt strategy that’s right for you.”

Alexei Garan, Head of Debt Advisory

This is for you if...

You are looking to restructure or refinance your existing debt to improve cash flows and unlock business performance. You value the expertise we can offer to find you the right solution in a fragmented and complex marketplace.