Debt advisory and debt restructuring plan
Organisations seeking to refinance, rollover or renegotiate debt facilities face unique challenges. Deloitte is a leading adviser to organisations seeking to implement operational and financial restructuring plans, with the support of existing or new financiers.
The Deloitte Approach
Deloitte caters to a wide array of clients ranging from public corporations, private entities, governments and local authorities to state-owned enterprises.
Our services include:
- Overall capital structure review and analysis
- Financial modelling/sensitivity analysis
- Debt carrying and servicing capacity analysis
- Advise on fundraising and alternative financial structures
- Source for alternative capital providers
- Draft an information memorandum
- Create and run a competitive bidding platform
- Assist with the negotiation of a final Term Sheet
- Assist with documentation and ensure that the conditions agreed in the Term Sheet are properly reflected
Our goal is to add value by working with our clients to secure and optimise capital or debt. We have a track record in using our relationships to get to the decision makers quickly and establishing reasonable time frames to work with financiers. We are able to bring credibility and clarity to restructuring plans, particularly to restore financiers’ confidence in the management.
Debt restructuring plan
A credible and experienced lead financial adviser is key to reaching a consensual debt restructuring between a borrower and its creditors that yields the best return to all parties concerned. As an independent party, we will actively manage the debt restructuring process and deal with issues faced in an objective and timely manner for a successful outcome.
We act as financial advisers to corporate borrowers, creditors or corporate creditors. The scope of services we provide includes:
- Quantify and value existing assets and liabilities to determine potential value ranges under going concern and liquidation scenarios
- Review viability of existing business operations
- Develop options and recommendations with a view to resolving debtor-creditor and inter-creditor issues pertaining to outstanding loans/ commercial transactions
- Consider the potential to introduce strategic or other investors to provide new equity or capital injections or asset injections or to realise assets
- Develop optimal debt restructuring plans that will match future cash flows with obligations under the restructured sustainable debt
- Present the terms and conditions of the restructuring plan to all stakeholders with a view to negotiate a consensual agreement
- Assist the legal advisers to formalise the completion of the debt restructuring plan