There are various measures that companies can take to strengthen their balance sheets and improve their financial resilience. Recapitalisation – an umbrella term for the tools a company may employ to manage and reduce its debt obligations – is a crucial step in this process.
Due to the Covid-19 pandemic, many companies have taken out new private or government-backed loans or extended existing facilities to weather the current crisis. As a result, it is estimated that there will be around £70bn of unsustainable debt (both government backed and private debt) by March 2021. This will have a knock-on effect for future growth and investment and lead to many businesses simply being unable to continue to trade. Even if companies are able to continue to trade, many will nevertheless seek to reduce their levels of debt.
Osborne Clarke's full service offering means we can help with all aspects of recapitalisations. We frequently advise on all types of recapitalisation structures – ranging from strategic advice through to examining any tax issues to execution and delivery. We routinely advise on recapitalisations both for creditors, debtors and investors, which means we can efficiently leverage our existing expertise and understand the position of all of the parties.
Please contact one of our experts below to find out more.