Debt Restructuring

A fiducie can receive assets already pledged and thereby accommodate new and historical lenders, with the possibility to define subordinations, waterfalls and reprofile cash flows to secure the transaction in an adequate manner.

bulletThe borrower has already several debts, secured by assets or not, and on different terms.

bulletNew borrowing can be difficult in light of conflicting clauses, existing covenants and lack of unpledged assets.

bulletAll lenders are accommodated through the same scheme in a non conflicting manner (collateral, maturities, waterfall, cash flows…).

bulletThe borrower benefits from a new financing and has consolidated the totality of its debt in a sustainable way.

Comfort of the borrower

bulletRetains the use of its assets, including its availability for a potential sale (subject to the agreement from the lender).

bulletOptimize its capacity to leverage its assets.

bulletAccesses a new class of lenders, shouldering on the robustness of the fiducie, and secure financing that banks would have normally shunned.

bulletAvoids negative tax implications found in other asset-backed financings (e.g. sale & lease-back).

bulletMaintains accounting and tax treatment associated with the asset (depreciation & amortization, time allowance on capital gain, revenues,…).

bulletPredefines, in agreement with the lender and the trustee, terms and conditions of the sale of the asset in case of default (price, time frame, buyers, exclusions,…).

Protection of the lenders

bulletAppropriately secures lenders.

bulletOrganize debt restructuring in good conditions.

bulletReduce distortions and conflicts amongst lenders.

bulletReinforces the quality of the pledges.

bulletIn mutual agreement proceedings, aligns the interests of financial and non financial creditors.

bulletDefines the terms and condition of potential future borrowing.

bulletReinforces the strength of the pledges, especially in the case of insolvency proceedings, owing to a convention de mise a disposition generating revenues allocated to the payment of the debt.

bulletControl of the assets and of their value through time by the trustee.

bulletProtective LTV based on the quality of the assets and its cash flow generation.