Corporate Restructuring | Think it Legal

Corporate
restructuring

At Think it Legal we believe that acting fast in challenging times can make the difference between company closure and leveraging those same challenges and using them as a drive for change. Our background in corporate restructuring only bears this out.

The consolidation of a business depends on something more than just business management. The challenges in company succession, competition, maturity of the market, failed investments, etc. can force the senior management to plan restructuring strategies without which the company would be doomed to insolvency.

Turn around management

Company crises can be rooted in economic (profitability), financial (financial or growth capacities) or equity (solvency) considerations. Also, it is common that all these causes arise at the same time, potentially deteriorating a company until there is no other option but filing for bankruptcy.

Thanks to our expertise in bankruptcy proceedings, at Think it Legal we not only detect the symptoms, but also the causes leading to it, and we take action as early as possible to transform the business model and safeguard its sustainability.

Corporate debt
restructuring processes:
rollover

One of the most plausible solutions for those companies with a high debt level which are going through times of liquidity shortage is restructuring their debt by means of new agreements that suit their solvency. This instrument can be used to avoid filing for insolvency.

At Think it Legal we design rollover proposals that are suited to the economic, financial and equity reality of each company, and we present them to the main financial creditors that conform the steering committee (the main financial bodies affected by the restructuring and designated as mediators and coordinators for the rest of entities.) We negotiate a standstill period (or non-aggression pact) with them and we develop a term sheet containing the terms of negotiation, collaborating actively in every due diligence process carried out by the financial creditors.

Out-of-court payment agreement strategies

Another out-of-court solutions set forth on the Bankruptcy law on business restructuring (Ley Concursal de reestructuración empresarial) is the out-of-court payment agreement mechanism. It serves the same purpose that financial restructuring, but it covers the totality of the creditors, whether or not they are finance related.

At Think it Legal we create out-of-court payment agreement strategies so the companies we counsel can reach agreements with their creditors thanks to the “debt relief and grace period” proposals ("quita y espera") and, this way, the asset imbalance can be corrected.