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Actions to address a debt restructuring process

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Written by Yolanda Plaza, Senior Manager of ONEtoONE Corporate Finance Spain

The economic crisis generated by COVID-19 has forced many companies to take advantage of extraordinary measures, both operational and financial, to ensure their viability.

Despite everything, we continue in an environment of high uncertainty and complexity. Companies continue to see their ability to generate profits and cash seriously diminished, with which they can meet their payment obligations. This situation will take many of them to consider the necessity to approach financial reconstruction processes, which allows them to adapt its capacity of return of debt, to the expectations of its businesses’ evolution.

It is fundamental to have complete, rigorous and updated information to carry out debt restructuring successfully. It is also essential to plan the strategy and count on expert professionals, knowledge of the market and enterprise mentality, that contribute credibility, confidence, and accompanying in this process. In many cases, that is critical to obtain the companies’ survival.

In general terms, the critical phases of a restructuring process are the following:

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