Financial Restructuring

FinanceNorth’s Restructuring Services provides reorganization, turnaround and implementation advice and services to underperforming and financially distressed businesses, their stakeholders and advisors.

Reorganizing a company in distress requires a sense of urgency, the early formulation of an exit strategy, an array of specialized experience and expertise, industry knowledge and a global perspective. Our immediate focus in any restructuring transaction is to preserve as much value as possible while helping to restore a company’s financial health and, if necessary, sell or restructure businesses with unparalleled speed and effectiveness.

Our restructuring teams assist companies and stakeholders to address pressures and effect turnarounds, to regain control, manage crisis, improve return to creditors and limit exposure to risk and bad debt through a full suite of services.

We can provide insight and increased clarity to companies and stakeholders through a suite of services, and we can proactively provide ways to help reduce the potential risk of future problems. Our professionals offer deep industry knowledge and situational experience to aid in delivering effective, market-leading advisory services.

By evaluating tactical and strategic scenarios, we identify and execute, where suitable, financial and operational enhancements to help businesses succeed.

“We invest across industries in both established and growth-oriented businesses across the globe.”

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Thomas Monroe, Chief Investment Officer

“They play a vital role in helping companies realize their growth potential. They uncover and unlock value by identifying great companies with untapped potential and enhancing their performance.”

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James Vaughn, Director, U.S Capital Markets. H.G van Baal & Co N.V

“At FinanceNorth, we believe They can create the longest-lasting value and growth if They invest deeply in our people and our clients.

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Kirsten Martin, Chief Financial Officer

Potential Challenges

  • Cash pressures or liquidity shortfalls
  • Actual or potential loan covenant breaches
  • Payroll or pension deficiencies
  • Credit rating downgrade
  • Over-leveraged

Managed Support

  • Crisis recovery
  • Preserving value and viability
  • Maintaining management control
  • Understanding the financial and commercial position, its prospective viability and range of restructuring options available
  • Developing solutions in partnership with creditors and debtors that relieves pressure on relationships between company and stakeholder

Demonstrated Performance

  • Developing and implementing restructuring proposals
  • Establishing cash needs and controls
  • Balance sheet reconstructions
  • Inter-creditor negotiations
  • Business planning

SOLUTIONS TO MEET YOUR NEEDS

Recapitalization is a type of corporate reorganization involving substantial changes in a company’s capital structure. Recapitalization may be motivated by a number of reasons. Usually, the large part of equity is replaced with debt or vice versa, resulting in a more stable capital structure, diversification of debt-to-equity ratio and improved liquidity. In more complicated transactions, mezzanine financing and other hybrid securities are involved.

Our bridge financing is a form of short-term funding, pending the arrangement of larger or longer-term transaction, employed typically to:

  • Inject small amounts of capital to carry a company so that it does not run out of cash between successive major private equity financings;
  • Carry distressed companies while searching for an acquirer or larger investor (in which case we often obtain an equity position in connection with the loan at a preferred valuation); or
  • As a final debt financing to carry the company through the immediate period before an initial public offering or an acquisition.

Restructuring finance is designed to facilitate the modification of current debt, operations or the structure of a company. This type of corporate action is usually undertaken when there are significant challenges, that are causing financial harm to the company and / or putting the overall business in jeopardy. The expectation is that through our restructuring assistance, a company can eliminate financial challenges, reduce or consolidate payments, and improve the business.