Debt Restructuring

KGI advises both debtors and creditors in complex restructuring transactions, executing capital structure reorganizations involving secured debt, unsecured debt and trade credit. KGI has advised on transactions involving excessive leverage, deteriorating or changing fundamentals, change of control, asset purchases and asset sales, including those pursuant to Section 363. We have the expertise and experience to lead restructuring processes (whether in or out-of-court), and since 1984 have built a reputation for assembling and arranging support for consensual plans. This results in:

  • A quicker restructuring
  • Lower costs and fees
  • Minimal disruption to the operations and the business' value

Our team has decades of negotiation experience with lenders, creditors and shareholders. We manage the process and do the necessary debt capacity, cash flow, interest coverage and liquidity analyses necessary to support a reorganized, healthy capital structure.

KGI brings to restructuring transactions a deep understanding of what lending institutions seek. Our practice is built around longstanding relationships with the lenders, and this credibility enables us to arrange support for restructuring transactions among the lender(s), the company and the other constituents. We make the case that restructuring is necessary and that our recommendation is the best alternative for both the lender and the client.

Restructuring Mechanics

  • Conversion of debt from short to long term
  • Modification of repayments
  • Conversion of debt to equity
  • Partial cancellation of debt
  • Exchange of debt for assets
  • Convenant Adjustments

If your company is struggling to address conflicts with lenders or vendors or other debt-related issues, please contact KGI to discuss how we can work together to create a plan, reestablish credibility with the lenders, and get the financing needed to stabilize the business over the long-term.

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