DEBT RESTRUCTURE

These programs can range from refinancing one piece of equipment to “full facility” financing encompassing revolving lines, inventory and term loans. Restructuring can allow companies to raise capital by leveraging assets which they already own. This is especially useful for business’s seeking to refinance existing bank or corporate debt.

 

The benefits realized include increased working capital through the reduction of debt service and increased cash flow. In situations where the company’s assets value exceed the remaining debt it is possible to raise additional cash. Many companies can benefit from this type of transaction. Debt restructuring can be used to finance growth, restructure troubled companies or provide balance sheet enhancement to healthy cash rich companies. To accomplish the goals of the client company, structures such as off-balance sheet financing and tax-oriented leases may be utilized.