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Restructuring and Reorganisation

Companies that suddenly face financial difficulties and enter negotiations with their key creditors need to understand potential future scenarios. It is also possible that a company in such a situation needs a restructuring plan and advice on how to achieve the best possible capital structure.

PwC can assist you in the following fields:

Refinancing
  • Assessing the existing capital structure, involving a review of loan covenants and securities.
  • Advising the client in negotiations with their finance providers to secure best possible financing terms.

Restructuring
  • Preparing and executing the restructuring strategy.
  • Writing a business plan and outlining future scenarios for the alternative ways of restructuring.

Acquiring financial resources and finding new sources of financing
  • Acquiring new financial resources up to the point of securing the new financial resource; project management; and communication with potential creditors.
  • Choosing the best financial resource among those available for the client and defining the optimum debt burden.

Management accounting tools and managing the expectations of different parties
  • Defining shareholders, creditors and other interested parties and coordinating the communication among them.
  • Developing a financing model to monitor cash flows and compliance with special terms in the loan agreement. Creating scenarios and stress tests.

Tax issues related to restructuring
  • Reorganizing shareholder participations and business activities always includes tax issues, be they related to income tax or VAT. Our international tax team will help you resolve both domestic and cross-border tax issues.

Drawing up transaction documents and negotiating
  • PwC can also be of assistance in providing a suitable legal solution for restructuring the company by helping you draw up relevant transaction documents and supporting you in negotiating the deal.

Reorganisation
  • If business activities come to a standstill due to the state of emergency, one way of addressing the obligations that continue to pile up is reorganising the company.
  • Reorganisation – a proceeding conducted via courts - is an adequate tool for overcoming the period of economic difficulties caused by the impact of the virus, restoring liquidity and granting that the company can be sustainably managed.
  • Reorganisation allows for, inter alia, extended deadlines for performing one’s obligations, performing monetary obligations in instalments and reducing the company’s debt.
  • It is also possible to restructure taxes that the company owes and the obligations it has to the bank.
  • In the context of an unexpectedly changing economic environment, one should not think of reorganisation as a failure – on the contrary, reorganisation is a tool that should be employed without undue embarrassment, where necessary.

Contact us

Indrek Leppik

Partner / Head of Litigation, PwC Legal

+372 5621 0872

Email

Indrek Ergma

Partner / Attorney-at-Law Head of Corporate and Employment, PwC Legal

+372 529 4580

Email

Viljar Kähari

Partner / Head of Banking & Finance, Estonia, PwC Legal

+372 508 4777

Email

Teet Tender

Partner, Baltic Advisory Leader, PwC Estonia

+372 5621 8528

Email

Erki Mägi

Consulting Director, PwC Estonia

+372 5625 6340

Email

Raul Ruubel

Director, Head of Deals, PwC Estonia

+372 5650 4101

Email

Lawyers who are not attorneys do not provide legal services but only assist attorneys to provide the legal services.

 

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