Today's businesses face an increasing array of challenges due to rapid technological change, heightened competition and slothful economic situation. This fundamental struggle with change, particularly in over-leveraged situations, has the potential to create a crisis environment with operational and financial problems, which ultimately lead to restructuring situations. Restructuring includes following services under its ambit:
Debt Restructuring / CDR
We assist our clients in developing timely and transparent mechanism for restructuring their corporate debts which could ensure timely and early revival of companies. The restructuring may include, but not limited to, the reliefs like extended period of repayment, complete relief from debt obligations for certain period of time by way of funding the interest charged, extended moratorium for principal repayment, reducing the total amount owed, exchanging a portion of the debt for equity in the debtor company etc.
One Time Settlement (OTS)
We also assist our clients with OTS (One Time Settlement) which is an opportunity for troubled borrowers to settle existing debt with their creditors and thereby avoid delays, hassles from notices and seizures from banks.
Recapitalization refers to the process of bring in changes in the capital structure of the company to improve its liquidity position. Recapitalization can be either through additional equity infusion in highly leveraged company or through generation of liquidity through strategic stake sale. It can also involve realigning company’s strategic growth plans and divesting non-core businesses of the Company. A carefully structured transaction can generate both liquidity as well as future capital appreciation for the Company and stakeholders. We are experienced in all phases of the recapitalization process. We have expertise in determining the viability of a transaction, developing the appropriate structure, finding the right investor and negotiating the terms of the management agreement.