REFINANCING AND RESTRUCTURING

Refinancing and debt restructuring for companies and developers

Many viable companies have a debt problem rather than a business problem: repayments that do not match cash flow, maturities bunched together, too many banks or financing designed for a different moment. Reorganising that debt in time costs less than doing it in a hurry.

At Manifest we analyse the debt the way a credit committee would and look for the structure and the lender that make it sustainable.

If any term is unfamiliar, it is explained in our financing glossary.

THE DIFFERENCE

Refinancing and restructuring are not the same

The earlier it is tackled, the more options there are. A company that is still paying negotiates on better terms than one that has stopped.

Refinancing

Replacing or renegotiating existing debt on terms that fit better: longer tenor, a grace period, lower repayments, consolidating loans or switching lender. The company pays normally and wants more headroom or to prepare an investment.

Restructuring

Reorganising all the company’s debt at once when its structure no longer fits the business: several banks, maturities piling up, collateral poorly allocated. It is negotiated with all lenders and the whole is redesigned before payment defaults appear.

WHEN

When it makes sense

Repayments absorb cash that should go into investment or growth.
Maturities bunched in a short period, or a credit line the bank will not renew.
Debt spread across many banks, with cross-guarantees and different terms.
State-guaranteed loans, such as ICO loans, whose repayment schedule no longer fits the business.
A developer with a loan maturing before sales are complete, or with stock that is slow to sell.
Temporary cash pressure in a company that is still profitable.

SOLUTIONS

Common solutions

Depending on the situation, we combine several of these routes:

Renegotiation with existing banks

Extending tenors, adding a grace period or reorganising collateral with the banks that already finance the company.

Consolidating the debt with a single lender

One longer loan replacing several, with a repayment the cash flow can carry.

Refinancing with alternative finance

Debt funds or private lenders when the banks will not move. Private credit and alternative finance.

Cash from the company's assets

A real estate secured loan or a sale-and-leaseback of a property to repay expensive debt. Sale-and-leaseback.

BALANCE

What a good refinancing changes

The answer is not always more debt or more time. Sometimes it means selling an asset, bringing in a partner or adjusting the business. We say so when we see it.

What you gain

Repayments matched to the business’s real cash flow.
Fewer counterparties and consistent terms.
Headroom to invest or get through a difficult period.
A more orderly relationship with lenders.

What to weigh up

The total cost can rise if the tenor is stretched a lot.
New collateral or covenants may be required.
Early repayment of existing debt may carry fees.
Alternative finance costs more than bank finance.

CRITERIA

What the lender looks at

How the company got here: whether the problem is one-off or structural, and what has been corrected.
Future cash flow: a realistic forecast showing the new debt can be repaid.
The debt map: who is owed what, with what collateral, tenors and terms.
Available collateral: property, assets or guarantees that can support the deal.
Payment history: how the company has met its obligations so far and whether there have been incidents.
The team and the plan: who runs the company and what is going to change.

METHOD

How we work

First conversation, free of charge. We look at the situation, the current debt and the concerns.
Diagnosis. A full debt map, a cash flow forecast and an analysis through a credit committee’s eyes.
Proposed structure. What gets renegotiated, what gets refinanced and with whom, and what the alternatives are.
Information pack and negotiation. We prepare the documentation and negotiate with banks and lenders. Where the deal requires it, we work alongside the company’s lawyers.
Closing and follow-up. We support you through to signing and check that the new structure works.

Fees: we work mainly on a success basis. Terms are agreed in writing before we start.

QUESTIONS

Frequently asked questions

What is the difference between refinancing and restructuring?
Refinancing improves the terms of a debt that is being paid. Restructuring reorganises all the debt at once, with every lender, when its structure no longer fits the business.

Can I refinance if I have already missed a payment?
It is harder, but not impossible. It depends on the cause, the collateral and the viability of the business. The earlier it is tackled, the more options there are. If the situation already requires a formal legal process with creditors, that is not our field and we say so from the start.

Can I consolidate all my debts into one loan?
Yes, if a lender is willing to take on the whole. It is usually easier when there is real estate collateral.

What if the bank will not refinance?
There are debt funds and private lenders that refinance deals banks will not accept. They cost more, so the options need careful comparison.

Do you work with companies in pre-insolvency or a court restructuring plan?
No. Those processes are handled by specialist law firms. We work earlier, while the company is still paying and the debt can be refinanced or reorganised with the lenders.

Does refinancing affect my standing with the banks?
A refinancing due to financial difficulty is usually flagged in the banks’ risk information. A refinancing to improve terms, in a company that pays normally, need not be.

Is debt holding you back?

Tell us what debt you have and what worries you. We will tell you whether it can be reorganised and how we would approach it. Everything you tell us is confidential. You can also call us on +34 678 131 989.

The information on this page is general and does not constitute an offer of finance or legal advice. Each deal is analysed individually and approval always depends on the lender.