At martinsdelima, we support companies, investors, and management teams in financial and operational restructuring processes, with a practical approach focused on preserving value, sustaining viability, and strengthening the negotiating position against creditors, partners, and other counterparties. We start with a complete diagnosis to understand the situation and compare realistic alternatives, combining financial modeling, risk analysis, and design of execution and control plans.
Our work typically includes the preparation of viability plans and change management, the assessment of risks and alternatives in pre-insolvency solutions, and technical support in refinancing and financial structure optimization processes.
Debt
We analyze the debt structure (terms, guarantees, covenants, costs, and subordinations), model cash and repayment capacity scenarios, and design refinancing or liability restructuring alternatives with clear financial stability objectives. This approach is usually integrated within “debt advisory”, where we provide technical and financial support in refinancing, financial structure optimization, working capital financing, or specific financing needs processes.
When the process involves negotiation with multiple creditors or investors, we construct a defensible and coherent financial narrative with the business plan, so that the proposed measures have traction and credibility with the parties.
Derivatives
In restructurings with debt covered or exposed to rates, currency, or inflation, we review the role of hedges and their compatibility with the new financial structure, identifying impacts on cash, residual risks, and critical points in the documentation. Our practice includes analysis of derivative structures and hedging design, aligning it with the financing strategy.
In complex operations, this analysis is also supported by the review of existing hedging contracts within the scope of the restructuring, when they exist, to understand their scope and relationship with the affected debt.
Human Resources
When the restructuring requires operational adjustments, we address the organizational dimension as a real lever of viability. We connect the financial plan with operational measures (capacity, cost structure, productivity, and reorganization), so that the plan is executable and not just “financeable”. This approach is framed within our ability to integrate a viability plan and change management within the restructuring process.
Geographic
In groups with several geographies or corporate scopes, we analyze where cash is generated, where it is consumed, and what assets or units support the value. With this, we propose options for reorganization of scopes, selective divestments, or reallocation of resources that allow stabilizing the whole and focusing on the units with greater resilience. This type of decision is supported by our usual work of diagnosis, analysis of alternatives, and development of execution plans.
Facing regulatory changes
In regulated sectors, a regulatory change can immediately alter income, costs, capex, or viability. In such cases, we incorporate the regulatory impact into the financial model and the viability plan, identifying which variables change, which decisions become critical, and which alternatives are compatible with the new framework. This approach is especially relevant when assessing “pre-bankruptcy solution alternatives” and a solid argument is required on future viability.
Sale and Lease-Back
We structure and analyze sale and leaseback transactions as an instrument to generate liquidity and strengthen the balance sheet without losing the use of the asset. In essence, the asset is sold and leased back to continue using it, usually with a long-term lease agreement.