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What is a debt restructuring process?

November 22, 2021

By: Antonio Mazzucco

Debt restructuring is a process that aims to reduce the total amount of a company's debt, reduce or suspend the interest rate that the company bears and postpone the deadline for paying debts.

What is the purpose of a debt restructuring operation?

Corporate debt restructuring is a very complex operation that aims to change the financial situation of an indebted company by providing the necessary cash flow so that the company can return to a state of profitability and solvency. Once the debt restructuring is completed, the debtor company receives financial relief that enables it to sustainably maintain its operations. On the creditors' side, debt restructuring plays a fundamental role in increasing the chances of receiving their rights.

The corporate debt restructuring process is a service offered by our office in partnership with specialized financial advisors.

The aim is to change capital structures so that companies can survive, reconciling, on the one hand, the interests of debtors and, on the other, the interests of creditors, observing current legislation and the aspects inherent to each transaction.

If you have any questions about the topics covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

Antonio Carlos Mazzucco

+55 11 3090-7302

antonio.mazzucco@br-mm.com

This communication, which we believe may be of interest to our customers and friends of the company, is intended for general information only. It is not a complete analysis of the matters presented and should not be considered legal advice. In some jurisdictions, this may be considered lawyer advertising. Please see the company's privacy notice for more details.

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