debt restructuring

Project category: Finance

Client - industry: Food manufacturer

Project description:

A food manufacturer inquired about receiving assistance from Frêney, because banks reduced the credit lines and the company faced a financial strain.

The team analyzed the particular reasoning behind the strain, with a focus on working capital cycle and debt costs. Frêney worked on the optimization of the debt structure:

• short-term debt was replaced by long-term debt
• the average cost of capital was reduced
• the interest rate risk was reduced with some derivatives
• terms of payment to suppliers were renegotiated in favor of the company