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Distressed Debt Restructuring
Here, the exercise is to seek the silver lining amidst the dark
clouds. Companies that ran into heavy debt burden unsupported
by existing and foreseeable matching cash inflows typically face
corporate moribund.
In addition to undertaking an exercise to term out the existing
heavy debt load and hence, buy time for corporate survival, this
exercise will undertake an overall review to come out with solutions
that re-focuses the attention and efforts of the corporation in
dire straits on cash generative activities that it knows best
to resuscitate itself.
Asset sales and packaging of existing loans and financing held
by existing financiers into high yielding debt securities are
efforts that can be made to provide a lifeline to the ailing corporations
in search of resuscitation and eventual revival.
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