Debt/Equity Restructuring

All successful businesses must have a rational correlation between their operating performance and debt structure. At times, a company’s performance falls short of previously planned events and/or expected targets, and there is a need to realign the debt structure with the business’ ability to support its debt service requirements.

With our operational experience, Phoenix Capital prepares a credible forecast that accurately projects a client’s financial performance. We also develop a plan to further improve on the company’s performance, and present recommendations on the debt level and structure the business can ultimately support.

Phoenix Capital also meets with our clients’ constituents to arrive at a mutually acceptable restructuring of the existing debt obligations. Such a restructuring can take on many forms, including:

• Temporary, relaxed principal and interest payments
• Renegotiated termed-out debt structures
• Conversion of some or all debt obligations to equity
• Subordination of senior debt

Phoenix Capital creates a credible financial structure for each client, and custom-tailors each solution to the specific needs of our clients.