Debt Restructuring, Work Outs and Refinancing

The options for an insolvent business include raising additional capital or substituting capital for debts.  These are not formal insolvency processes and are dependent upon the willingness of external creditors to accept a level of risk with the upside of an equity stake if the business successfully overcomes its problems.

Work outs are another form of non-statutory voluntary arrangement which freezes a company’s debts whilst it seeks to stabilise the business, usually by obtaining additional capital.

We can assist business owners by identifying the most effective form of restructuring, depending upon the debt and capital profile of the company.  In straightforward cases the lender may swap some of its loan for an existing class of shares;  in other cases a special class of shares (usually non-equity) may be created (typically redeemable or convertible preference shares) effectively subordinating the loan to the company’s general creditors.  The objective is to restore financial stability and make the company more credit-worthy in its trading relationships.

Our Team


More Knowledge
Coronavirus Update - CJRS Bonus - Are you eligible?

Back in the summer the Chancellor announced that employers could receive a one-off payment of £1,000 for every employee who had previously been furloughed under the Coronavirus Job Retention Scheme  provided they remained continuously employed to the end of January 2021.  Businesses will be able to claim the Job Retention Bonus from 15 February 2021 and the Government has stated that further guidance will be provided by the end of January 2021.

Family Investment Companies

What is a family investment company (FIC)?

FICs are companies limited by shares (an “Ltd” or “Limited”) often setup by parents or grandparents (“Founders”) to benefit both themselves and their family as shareholders. Their popularity has increased in recent years, being seen as a corporate alternative to the more common discretionary trust.

Coronavirus Update - Jobs Support Scheme announced

With new government guidance on Covid coming into force today and the current furlough scheme coming to an end next month, as expected, the Chancellor has today announced a new scheme to help businesses.  

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