Debt Restructuring involves the reorganisation of existing loan obligations to align repayment terms with the current cash flow position of the borrower. It may include rescheduling of instalments, conversion of facilities, interest rate revision or other modifications agreed with the lenders.
Scope of Services
Support covers:
Assessment of existing debt structure and cash flows
Preparation of restructuring proposal and financial projections
Documentation required by banks for consideration of the proposal
Coordination during the appraisal process
Assistance with post-sanction documentation
Key Elements
The process addresses:
Repayment capacity analysis
Security coverage and collateral position
Promoter contribution and additional support
Compliance with regulatory guidelines on restructuring
Outcomes
A structured proposal facilitates discussion with lenders and supports the formalisation of revised repayment terms.