04 Aug 2015Corporate Debt Restructuring
Raising capital through debt financing can be a very attractive option in an environment conducive to business growth. However, excess debt can lead to overwhelming financials problems and place a company’s future in jeopardy in times when the business is struggling. Corporate debt restructuring (CDR) provides an effective solution to enhance liquidity & profitability by establishing fair and equitable debt repayments to creditors.
Corporate debt restructuring is a mechanism by which a company attempts to overhaul its outstanding obligations. The reorganisation of the outstanding debt can be done by: increasing the tenure of the debt, reducing the interest rate, conversion of debt to equity or by conversion of outstanding portion of interest into term loan.