What options are available to a distressed company that can’t meet debt obligations?

Posted by

To view Verified answers click on the button below.

▪ Refinance and obtain fresh debt / equity.
▪ Sell the company (either as a whole or in pieces in an asset sale).
▪ Restructure its financial obligations to lower interest payments / debt repayments, or issue debt with PIK interest to reduce the cash interest expense.
▪ File for bankruptcy and use that opportunity to obtain additional financing, restructure its obligations, and be freed of onerous contracts.