CEH #15: Restructuring Your Company’s Debt During the Pandemic

A webinar recording clip.

Businesses throughout the country in most industries have been adversely impacted by the pandemic, whether due to government-ordered closures, mandatory and voluntary quarantines, social distancing, workforce reductions, supply-chain shortages or other issues.

As a result, commercial borrowers are already, or will shortly be, defaulting on debt service payments and loan covenants. Borrowers are requesting payment delays, waivers and forbearances from their lenders during this difficult period. One of the primary issues that both sides must address is the uncertainty surrounding the duration and severity of the pandemic, as well as its effect on the borrower’s business in the future.

If your company is in a hard-hit sector, you might be struggling to comply with your debt and interest coverage. In this context, renegotiating loan repayment with lenders can help avoid bankruptcy and redundancies. If your company is operating on debt, restructuring can also provide much-needed “breathing space“ in easing its burden without affecting operations.

Financial constraints should not result in insolvency or your business ceasing operations. In this live Zoom webinar, our expert, Wong Fe Mei will share with you some tips for debt restructuring which is not a means to zero debt, but a change of terms to ease your company’s burden and aim for business continuity.

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