Corporate Debt Restructuring
High-interest short-term debt and a rough macro environment had squeezed the company's cash flow.
We merged several costly loans into one long-term structured loan at a better rate.
The refinance cut monthly repayments by 28% and brought liquidity back.
Understanding the situation
Multiple short-term, high-interest facilities created unsustainably high monthly repayment obligations.
Macroeconomic fluctuations slowed export revenues, leading to technical defaults on debt covenants.
Valuable core assets were double-collateralized, blocking fresh working capital limits.
How we solved it
Conducted a detailed audit of the debt stack and mapped what the company could realistically service long term.
Negotiated term extensions and rate cuts with a consortium of 3 commercial lenders.
Consolidated short-term liabilities into a single structured term loan with an initial 12-month principal moratorium.
Measurable outcomes
₹22Cr in high-cost short-term liabilities successfully consolidated and refinanced
Reduced monthly debt servicing costs by 28%, immediately restoring operational liquidity
Secured a 1-notch credit rating improvement post-restructuring within two quarters
Reopened regular raw material credit lines with global suppliers
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