We are more than happy to present to you the most reliable debt restricting solution at your convenience.
Has the company run into a financial crisis that is affecting its performance?
Are debts the reason for the decrease in the performance of your company?
Would you like to restore the availability of liquid assets to the market?
What is Debt Restructuring?
Debt restructuring is a process that allows a company or organization with cash flow problems and financial mishaps to renegotiate existing debts as a way of improving or restoring liquidity and stay in operations.it is a method that is used by companies to extent dates for liabilities and avoid existing debt defaults or the availability of lower interest rates. The process may include debt for equity swap and the movement of debt from private to public sector.
How Debt Restructuring works?
The process involves reducing loan interest rates, extending deadline dates or both as a way of improving chances of fulfilling contractual obligations. Creditors avoid bankruptcy and liquidation because it means they will receive less. It’s a win-win situation for the company and the lender.
Bankruptcy drives some companies to restructure their debts. When this happens, a company may restructure some of the loans as per the priorities. Sometimes creditors alter debt terms to avoid running bankrupt.
How do you Restructure Business Debts?
Examination of the existing loans by a specialist to be consolidated. It is done over a lengthy period with manageable monthly repayments.
A company can take a debt restructuring loan from a lending company
Who should consider Debt Restructuring?
A company that is experiencing extreme financial difficulties with the only options being debt restructuring or filing for bankruptcy.
What are the advantages of Debt Restructuring?
- Consolidates existing debts
- Enables you to plan your finances more easily
- Gives the company a chance to stay in business and reach growth
- Ability to pay with lower interest rates
- Lower debt payments
- Debt repayment schedule extended
- Management keeps the tenure
- Leads to freed cash within the company
How to achieve Debt Restructuring?
- Debt for equity swap
- Bondholder haircuts
- Informal debts repayment agreement
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Debt Restructuring Stats
There is a common fear that debt restructuring destroys the credit ratings of the company. Once pronounced bankrupt, the credit rebuilding process can begin once you have been discharged through various products and options available to you. Credit can often be repaired within 18-24 months with the implementation of a detailed credit rebuilding plan.
Excellent credit ratings should go hand in hand with a clear roadmap for becoming debt-free.
How much will debt consolidation save you?
- According to the most recent data from the Bank of Canada, the average debt held by Canadians, excluding mortgages, is $20,759.
- The Office of the Superintendent of Bankruptcy reported that 137,178 Canadians filed for bankruptcy or modified repayment terms with creditors last year, a 9.5 percent increase over 2018. It marked the most filings since 151,712 in 2009 and the quickest annual increase since then. Business insolvencies and debt restructuring proposals rose 2.8 percent last year, the first annual increase since 2001