Capital stack
Restructure the Capital Stack Before It Restructures the Company.
Every company under financial strain will eventually be restructured, either on its own terms or on someone else’s. The difference is who acts first.
Planned or forced
A planned restructuring reshapes the debt. A forced one reshapes the company.
When a company waits, the capital stack starts making decisions for it. Lenders enforce their rights, creditors compete for position, and choices about assets, people, and ownership are made under pressure, often in a formal process with costs and timelines no one controls.
When a company acts early, the conversation is different. Management and owners stay at the table, lenders can be offered a credible plan rather than a default, and the business keeps operating while its obligations are reset to a level it can carry.
Understanding the stack
Every layer has its own interests
Senior secured debt
First in line and backed by the company’s assets. Senior lenders usually hold the most influence over what happens next.
Junior and mezzanine debt
Higher risk and higher return. These lenders often have the most to lose, and the most reason to support a solution.
Unsecured creditors
Suppliers, landlords, and other obligations that keep the business running day to day and must be managed with care.
Equity
Owners and investors who stand last. Acting early is often the only way to preserve meaningful value for them.
A lasting solution has to work for each layer. We map who holds what, what each party needs, and where the room for agreement lies, before positions harden.
The tools
Reshaping the stack to fit the business
Reset the terms
Extending maturities, resetting covenants, and adjusting interest and repayment schedules to match realistic cash flows.
Reduce the debt
Debt-to-equity swaps, discounted buybacks, and write-downs that bring total debt down to a sustainable level.
Rebuild the base
New money, refinancing, or fresh investment that strengthens the balance sheet and funds the business’s next stage.
How we work
Taking control of the outcome
Stabilize
Secure liquidity, establish a clear cash view, and open constructive dialogue with lenders.
Analyze
Determine what debt the business can truly support and how value is distributed across the stack.
Propose
Build a restructuring plan with a clear rationale that each class of stakeholder can evaluate.
Execute
Negotiate to agreement and stay engaged until the new structure is in place and working.
Confidential consultation
When the pressure is on, talk to us early.
The sooner we're involved, the more options you keep. Every conversation is confidential.