Borenius advised on an innovative restructuring programme that achieved full debt repayment several years ahead of schedule

We advised our client on an innovative restructuring programme that achieved full debt repayment ahead of schedule. The restructuring, supervised by Borenius’ Senior Associate Olli Latvasaho, was concluded prematurely, with all the restructuring debts of the company being paid in full, over four and a half years ahead of schedule, which is rather unusual in the market. The restructuring was carried out in accordance with the Finnish Restructuring Act and the company was domiciled in Tampere.

Furthermore, the restructuring programme was innovative, as it included not only a 100 percent payment but also other innovative restructuring tools. As part of the restructuring, a fully-owned subsidiary was merged into the company undergoing restructuring, which streamlined the corporate structure and provided additional resources for debt repayment.

Additionally, in this private company, a debt conversion was implemented, whereby debts owed to shareholders were converted into shares of the company being restructured. The debt conversion proved to be an effective tool in this restructuring, as converting debts into shares made it possible to render a full payment to all outstanding creditors.

With our team’s experience and insight, we incorporated feasible terms into the programme and were able to fully utilise innovative restructuring tools for the benefit of our client.