Services Financial Restructurings Services

Financial Restructurings

All successful businesses must have a rational correlation between their financial performance, business plan, and debt structure.

At times, a company’s performance falls short of previously planned events and/or expected targets, and there is a need to realign the existing debt structure with the business’ ability to support its debt service requirements or to obtain new financing.

Complex Out-of-Court Refinancings, Financial Restructurings and Recapitalizations

In situations where a client's lenders and investors are concerned about uncertainties, it pays to have a third party involved that has years of experience dealing with these situations. Our in-depth knowledge of the capital markets, combined with our intimate relationships with private equity, mezzanine capital and senior debt sources, ensures that our clients obtain the best possible terms from its lenders and investors and/or find the right new financial partner. Phoenix Capital Resources™ creates a credible financial structure for each client and custom tailors each solution to the specific needs of our clients.

Phoenix Capital Resources critically reviews existing forecasts and works with the client to prepare forecasts that accurately project a client’s financial performance and capital requirements. We work with management to critique any plans to further improve the company’s performance, and present recommendations on a capital structure that the business can support based on current market conditions.

A company may need to retool its capital structure to support growth opportunities or refinance expensive debt that features restrictive covenants to provide competitive returns to existing shareholders. Alternatively, a recapitalization can be an attractive alternative to an initial public offering or outright sale, since it enables a company to grow its existing assets or shore up a challenging financial situation.

Phoenix Capital Resources professionals have extensive experience and a long track record of meeting with our clients’ constituents and arriving at a mutually acceptable restructuring and/or settlement of the existing debt obligations. Such a restructuring can take on many forms, including:

  • Covenant violation waivers and restructured covenants
  • Temporary, relaxed principal and interest payments
  • Renegotiated termed-out debt structures
  • Subordination of senior debt
  • Settlement of debt obligations for less than face value
  • Conversion of some or all debt obligations to equity

Bankruptcy Advisory

At times, a company’s affairs are better managed under the protection of Chapter 11 of the United States Bankruptcy Code. Phoenix Capital Resources professionals have extensive experience with bankruptcy proceedings and have successfully guided many clients through this complex process. Phoenix Capital Resources provides the following services within the context of bankruptcy:

  • Evaluating the companies operating plan and strategy and how it affects an exit
  • Arranging, negotiating, and structuring DIP and emergence financing
  • Managing asset sales, §363 sales, and bankruptcy liquidations

A successful Chapter 11 proceeding requires communication with all constituents, moving quickly toward a plan of reorganization or a sale of the business. Having managed many bankruptcy-related engagements, Phoenix Capital Resources professionals have the experience and know-how to guide our clients through the complexity and rigor of the bankruptcy process.