Restructuring bankers advise financially distressed companies, lenders, bondholders, and other stakeholders. A company may need help because it cannot make required interest payments, faces an upcoming debt maturity, or has a capital structure its operating performance can no longer support.
The work may involve an out-of-court solution, such as extending debt maturities or exchanging existing bonds for new securities. It may instead involve a court-supervised bankruptcy process. Depending on the mandate, an RX team may advise the company, known as the debtor, or a creditor group seeking to maximize its recovery.