Balance Sheet Restructuring

Realigning debt structure to support new cash requirements.

At times, a company’s performance may fall short of previously planned events or expected targets, resulting in the need to realign its existing debt structure via an out-of-court refinancing, financial restructuring, and/or recapitalization processes.

At Phoenix, we instill confidence in clients, lenders, and investors through more than 30 years of experience delivering in-depth knowledge of the capital markets, and established relationships with private equity, mezzanine capital, and senior debt sources.

Phoenix Capital Resources® creates a credible financial structure that considers the realities and needs of each client, ensuring that companies find the right financial partner and obtain the best possible terms from its lenders and investors.

Our experts critically review existing forecasts and work with our clients to prepare new forecasts that accurately projects the business’ anticipated financial performance and capital requirements. We also work alongside management to critique business plans and present recommendations on a capital structure that the business can support based on current market conditions.

A company may need to retool its capital structure to support growth opportunities, shore up a challenging financial situation, or refinance expensive debt that features restrictive covenants.

Our recommendations for balance sheet restructuring generally focus on the following areas:

  • Covenant violation waivers and restructured covenants
  • Temporary, relaxed principal and interest payments
  • Renegotiated termed-out debt structures
  • Subordination of existing senior debt to “new money”
  • Settlement of debt obligations for less than face value
  • Conversion of some or all debt obligations to equity
  • Debt payment and balance sheet restructuring through the sale of under-performing divisions / assets

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