The Improvement

Only in this way can be an internal liquidity shortage or even a mature financial restructuring or a renovation of the medium-sized company regardless of the banks reach ( Lucky way, there are a number of institutional investors and investment companies that specialise in particular on the rehabilitation of companies and lead to the medium-sized companies with appropriate revision of the business model and good prospects for the future new liquidity. Improving the capitalization structure of the company is easily possible by accompanying measures initially without the supply of fresh liquidity. Significant improvements to the balance sheet and capital structure of a company in crisis can be achieved with often just performed contract amendments. Such a strengthening of capital and thus the Elimination of a funding crisis is for any company with a so-called debt-equity swap\”possible. The term debt-equity swap\”means the conversion of liabilities (debt\”) in equity (equity\”) and is a measure of the debt restructuring without Bank and at the same time an act of balance sheet optimization. Through appropriate agreements, balance legal debt become equity.

Liabilities can be converted into full share (E.g. GmbH ordinary shares or shares) as well as in mezzanine financing (E.g. profit participation rights and silent participations). The conversion of debt into equity is suitable E.g. for existing shareholder loans, but also for all other liabilities standing outside the company third parties (E.g., the conversion of suppliers liabilities).

When still more critical funding shortages, you can may bring a restoration comparison with partial waiver of the creditor. The refinancing of bank loans can also be a curative measure for the improvement of the financial situation of a company without or with lower loan commitments and new private capital. On this the company can say, get relief gradually. Finally, the entrepreneur is by this financing restructuring itself and personally enthaften.

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