Financial Distress and Debt Restructuring

Many businesses, at some point in their trading life, are faced with financial or economic distress or potential insolvency. These situations require practical solutions aimed to quickly reduce costs, and increase cash flow. Sometimes insufficient access to funding or liquidity issues may also have a negative impact on business operations.

There are various ways of addressing this in order to minimise the erosion of the business’ performance. This can be achieved with an immediate focus on strategy and operational improvements to the business.

Some of the most common options generally available to businesses in financial distress are:

  • negotiating new contract terms with creditors;
  • negotiating new contracts with new creditors; or
  • allowing the business to be liquidated by an appointed liquidator.

Already in financial distress?

If your business is already in distress and is subject to formal demands for payments by a bank, or subject to any other legal claims, one of the ways of dealing with the situation is to privately negotiate and arrange the restructuring of business debt with the bank or with alternative lenders and investors.

Some of the most effective solutions are to:

  • restructure the debt on more favourable terms;
  • reduce interest payments and/or principal amounts;
  • extend the maturity of the credit facility;
  • substitute security for the debt; or
  • consolidate or divide the existing debt.

How we can help

Our banking and finance lawyers deliver restructuring solutions designed to build a platform for swift recovery of your business. We thoroughly assess all options, assist you in accessing expert advice from specialists in commercial finance, and negotiate with your bank to agree a viable plan of action.

Our Experts

William Fox Bregman

Partner, Solicitor & Head of Banking and Finance Litigation

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Paul Kanolik

Partner & Solicitor

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William Dooley

Senior Associate Solicitor

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Henrietta Frew

Senior Associate Solicitor

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Luke Baldwin

Solicitor

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Emily Ferris

Chartered Legal Executive

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Laura Lammond

Solicitor

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Tim McMahon

Solicitor

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Amy Mellor

Solicitor

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Wai Chan

Paralegal

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Melissa King

Personal Assistant

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Daniel Lewis

Trainee Solicitor

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Leah Sharman

Paralegal

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Ellie Sherriff

Personal Assistant

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Grace Tyror

Personal Assistant

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Here to help

Our specialist teams can provide full service legal advice and assistance, providing practical and cost-effective solutions.

Our offices

Bournemouth
302 Charminster Road Bournemouth Dorset BH8 9RU
01202 525333 Contact
London
Office 320 107 – 111 Fleet Street London EC4A 2AB
02039 784720 Contact
Poole
14a Haven RoadCanford Cliffs, Poole Dorset BH13 7LP
01202 709898 Contact
Ringwood
Monmouth Court Southampton Road, Ringwood Hampshire BH24 1HE
01425 484848 Contact
Swanage
55 High Street Swanage Dorset BH19 2LT
01929 422233 Contact
Wimborne
39a East Street Wimborne Dorset BH21 1DX
01202 057676 Contact