Knowledge innovation

debt restructuring


Food manufacturer

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