Debt Restructuring Advisory.
When a business's obligations no longer match what it can actually generate, the right response is a renegotiated structure, not a new loan. EquiFin works with existing lenders to reset tenor, repayment and covenants before a manageable stress becomes an unmanageable default.
Covenant Renegotiation · Repayment Realignment · Existing Lender Engagement
Where This Becomes Relevant
- A covenant has been breached or is at genuine risk of being breached under current terms.
- Cash flow has fallen short of what's needed to service existing debt on its current schedule.
- An external shock — sector-wide, regulatory or market-driven — has materially changed the business's near-term outlook.
- The business needs relief now, before the situation escalates toward default and the lender's options narrow.
What Lenders Evaluate
- Genuine Cause of Stress — whether the issue is temporary and addressable, or reflects a deeper structural problem.
- Realistic Revised Cash Flows — a credible, conservative view of what the business can actually service going forward.
- Existing Security Position — what's already pledged and how a restructuring affects the lender's recovery position.
- Management's Response — what the business itself is doing to address the underlying stress, not just asking for time.
How the Financing Is Approached
Restructuring starts with a clear-eyed, realistic reassessment of what the business can actually generate and service going forward — not an optimistic case built to secure relief. That revised picture forms the basis of the conversation with existing lenders, whether the ask is extended tenor, a temporary payment holiday, revised covenants, or a combination. The goal is a structure both sides can genuinely live with, not the minimum concession that buys a few months' time.
What EquiFin Does
Realistic Cash-Flow Reassessment — building a credible, conservative view of servicing capacity going forward.
Lender Engagement — presenting the case to existing lenders and negotiating revised terms.
Structure Design — proposing a revised tenor, repayment and covenant structure that genuinely works for both sides.
Multi-Lender Coordination — aligning terms across lenders where more than one is involved.
Why EquiFin
- We build the realistic case first, not an optimistic one designed to win short-term relief.
- We engage lenders directly and early, before options narrow toward default.
- We coordinate across multiple lenders where the debt isn't held by just one.
- One point of contact from reassessment through to a signed restructuring.
Frequently Asked Questions
What is debt restructuring?
Debt restructuring is the renegotiation of a business's existing loan terms — tenor, repayment schedule, covenants or security — typically undertaken when the business is under genuine financial stress and its current obligations no longer match its actual cash-generating capacity.
How is debt restructuring different from refinancing?
Refinancing typically replaces debt with a new, better-priced facility once a business's credit profile has improved. Restructuring renegotiates existing debt with the current lender because the business is under stress and needs relief — extended tenor, a payment holiday, or revised covenants — rather than better terms from a new lender.
What triggers the need for debt restructuring?
Common triggers include a covenant breach, a sustained cash-flow shortfall relative to debt servicing obligations, an external shock to the business's revenue, or a realistic assessment that current terms cannot be met without relief — before the situation escalates into default.
See what documents lenders typically ask for — Documents Required for a Corporate Loan →
Addressing Stress Early Keeps More Options on the Table.
A realistic restructuring conversation now is easier than a forced one later.
Discuss a Debt Restructuring Requirement