Corporate Debt Restructuring (CDR) & Insolvency Advisory

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Corporate Debt Restructuring (CDR) & Insolvency Advisory

What is CDR & Insolvency Advisory?

Corporate Debt Restructuring (CDR) is a structured process that allows financially stressed companies to reorganize their debts and obligations with the support of lenders, without entering into lengthy legal disputes. Insolvency advisory, on the other hand, involves guiding businesses through the Insolvency & Bankruptcy Code (IBC), helping them with resolution plans, compliance, and revival strategies.

This service ensures a balance between lenders’ recovery and the company’s survival, promoting business continuity.

Benefits

✔ Business Continuity – Helps avoid liquidation by reviving stressed companies.
✔ Improved Cash Flow – Reduces immediate debt burden through restructuring.
✔ Legal Protection – Safeguards against creditor actions during the restructuring/insolvency process.
✔ Stakeholder Confidence – Builds trust with lenders, investors, and employees.
✔ Customized Solutions – Tailored strategies such as debt rescheduling, equity conversion, or asset monetization.
✔ Compliance with IBC – Ensures adherence to regulatory requirements under Insolvency & Bankruptcy Code.
✔ Time-bound Resolution – Faster and more efficient than traditional litigation.

Process

1.   Initial Assessment – Review company’s financial health, debts, and obligations.

2.   Feasibility Study – Identify possible restructuring or insolvency resolution options.

3.   Engagement with Lenders/Creditors – Negotiate terms such as repayment schedules, interest reductions, or equity swaps.

4.   Restructuring / Insolvency Plan – Draft and submit a detailed plan under CDR or IBC framework.

5.   Implementation – Execute the approved plan, monitor compliance, and ensure financial stability.

6.   Post-Restructuring Advisory – Ongoing support to maintain sustainability and compliance.

Required Documents

Company Incorporation Documents (MOA, AOA, CIN, PAN, GST)
 Financial Statements (Audited balance sheets, profit & loss, cash flows for 3–5 years)
 Debt & Loan Agreements with Banks/Financial Institutions
 Details of Secured & Unsecured Creditors
 Asset Valuation Reports (movable & immovable assets)
 Business Plan & Future Projections
Existing Litigation / Legal Cases (if any)
 KYC of Promoters & Directors

Conclusion:
CDR & Insolvency Advisory provides a lifeline for distressed companies by offering structured debt solutions, protecting legal rights, and ensuring long-term sustainability.