Debt Restructuring and Financial Advisory

Corporate Debt Restructuring
The Process

STAGE 4 ---CONFRONTATION

Creditors always initiate this phase

Distrust manifests itself and cooperation ends

Belligerent stage can last years

Lawyers, Auditors etc.

STAGE 5 ---EXHAUSTION

Huge expenses with little progress to show for it changes bankers’ minds

Customer realizes the cost of the impasse to his business

STAGE 6 ---ACCOMMODATION

Compromise -- focus on the forest, not the trees

Need to reallocate people to productive activities

Recognition of the need to share the pain and steps are taken

to come to a compromised agreement

The goal is to “close the deal” as soon as possible

STAGE 7 ---RESOLUTION

An agreement is finally concluded and signed

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