Initial analysis in restructurings

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This Overview is a guide to the Banking & Finance content within the Initial analysis in restructurings subtopic, with links to appropriate materials.

Initial steps

Whether you are acting for the debtor, creditor, or other stakeholder, the first step in a restructuring is to obtain all relevant finance and security documentation and conduct due diligence on the debtor company or group of companies. For an overview of the relevant steps, see Practice Notes: How to approach debt restructuring and enforcement and Restructuring—initial steps.

Financial issues

The first indication of financial distress in a company is likely to be a breach of its financial covenants under its facility agreement, which is likely to cause the lenders to be concerned that the group will be unable to meet its payment obligations, putting their investment at risk. For more information on common types of financial covenants, see Practice Notes: Introductory guide to financial covenants, Loan to value covenants and Cashflow and balance sheet tests for insolvency.

Usually the company will appoint new advisors to conduct an independent business review (IBR), which is a financial

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