Refinancing

Hi WSO Members,

What questions do you need to ask yourself if you know that your portfolio company won't be able to service debt and the amortization schedule needs to be renegotiated? For example would you rather ask the banks for some additional e.g. 2-year grace period and then higher amortisation by 20% or so or is it better to have a shorter grace period (e.g. 6 months) and pay more as bullet at maturity? How do you find the best solution among many combination that are possible?

Kind regards,

Anne

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