Debt Reduction and Renegotiation
Sherwood professionals are experts in managing corporate obligations. Whether your company requires restructuring of a few troublesome obligations, needs to streamline and reduce debt or must quickly reduce its cash burn rate, we customize and implement a plan for each situation. We advise on all forms of liabilities including short and long-term credit facilities, subordinated and convertible debt issuances, trade credit, real estate leases, equipment leases and contractual obligations.
Over the years, our firm has developed an array of creative approaches and tactics to ease the corporate "cash crunch". Some of the many solutions may be:
- Extend credit terms and minimize rates and fees
- Payment moratoriums are instituted for necessary period of time
- Permanent reductions are granted on outstanding credit balances
- Monthly lease payments are lowered by reduction in space or equipment needs
Our long history as management advisors has produced a very compelling list of benefits for using third-parties to negotiate debt. The key benefits are:
Time Savings (ROT – Return on Time)
If your company is at a critical juncture, management needs to focus on business activities, not hassle with creditors and other interested parties. While we deal with the complex details of negotiation and deal-making to improve your financial situation, management is free to focus on the company's operations. Using a proven third party can save a tremendous amount of time and increase the eventual success.
Credible And Objective Approach
Using an experienced independent firm inserts credibility and objectivity into the process. Many of the major creditors have already worked with Sherwood Partners. By reputation, they know we present the facts and "get down to the business at hand". We offer a fresh perspective and facilitate constructive and smart results.
Serious Intentions
When a third-party makes the hard telephone calls, creditors are aware the situation is serious. With professional advisors in place, creditors realize they must view your corporate obligations to them in a different light.
In debt reduction and renegotiations, Sherwood Partners can do the following for your company:
- Restore credibility between all parties
- Provide accurate and timely information to your creditors and establish straightforward relationships as the basis for negotiation
- Manage your creditors to preserve an on-going relationship with your company after the restructuring is complete
- Repair strained vendor/customer relationships with our firm's credibility, frequent communications and renewed cooperation
- Manage expectations
We recognize that creditors represent one of the most important relationships in a business. These relationships are often the most fragile as well. Sherwood works carefully with each creditor to ensure that integrity and goodwill is preserved. We set the stage to allow relationships to move forward on stronger footing with improved communication.
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