Corporate Debt Restructuring – A Case Study

 
 

Corporate Debt Restructuring

 

The Principals of Revitalization Partners bring extensive experience in working with equity investors and lenders to facilitate corporate debt restructuring.

We evaluating the investor’s & lender’s exposure and help the company propose the proper actions necessary for corporate debt restructuring and improving their financial and operating position.

We understand what is important to lenders and help create and present a corporate debt restructuring plan that is acceptable to your lenders.

We leverage our management, investment and financial experience to provide our clients with an in-depth understanding of the issues involved in a corporate debt restructuring for their company.

Each of the Principals brings due diligence experience that transcends financial due diligence and enables us to identify operational flaws and corporate debt restructuring opportunities that are not readily detected by financial analysts. Our services include:

  • Corporate Debt Restructuring
  • Reviewing the feasibility of management’s business plan and assessing the company’s industry and market
  • Evaluating key personnel
  • Evaluating loan collateral, especially intellectual property
  • Preparing a liquidation analysis
  • Monitoring implementation of strategic initiatives
  • Evaluating M&A prospects from a financial and operations perspective

A Case Study …

Description:

This is a privately owned visual presentation company where revenue had declined significantly and it was not profitable.  The debt load had risen to a level that far surpassed the company’s ability to repay it.  The company was also administratively supporting three other related companies without compensation. Corporate debt restructuring was needed immediately.

 

Challenge:

Immediately reduce operating expenses, revamp the sales and operational management, reduce the debt load through corporate debt restructuring and return the company to profitability.

 

Results:

Corporate Debt Restructuring involved us reducing the long term debt load from $11 Million to $1 Million by renegotiating the debt with the debt holders.

  • The sales function was reorganized and streamlined.
  • The commission structure was restructured and focused on selling the company’s more profitable product lines.
  • Expenses were reduced by restructuring the administrative functions so that they would only support the existing company.

 

Corporate Debt Restructuring may seem like a daunting and embarrassing task, but your lenders will be most appreciative if you start your corporate debt restructuring program early.  Corporate Debt Restructuring.

Corporate Debt Restructuring, done properly, will bring immediate financial relief to your company and an effective corporate debt restructuring program will be viewed as actions of capable and responsible management. Corporate Debt Restructuring.

We found that corporate debt restructuring programs are most often well received both internally and externally.  Corporate debt restructuring is actually a straightforward process and when implemented properly, your corporate debt restructuring plan will save you a great deal of aggravation and angst.

The Company returned to profitability with twelve months resulting in a successful sale thanks to Corporate Debt Restructuring.

Corporate Debt Restructuring.