Financial Restructuring | Nexum Advisory

Why

Why you need financial restructuring

Financial debt restructuring through negotiations with creditors and loan rescheduling is carried out while the company is still solvent, with the goal of avoiding bankruptcy. Consensual financial restructuring, governed by a dedicated law in Serbia, gives the company a protected framework for that agreement.

Difference between operational and financial restructuring

Financial restructuring applies once the pressure is already in the balance sheet and cash flow — obligations exceed the payment capacity of the current structure.

Consequences of not addressing financial pressure

Payment delays escalate, creditworthiness weakens further, options narrow with every missed deadline.

Signals that it's time for financial restructuring

Liquidity is under pressure, covenants are at risk or breached, creditors are demanding additional collateral or accelerated repayment.

Common problems

Most common problems we solve

Debt structure misaligned with cash flow

Repayment installments don't follow the company's actual revenue dynamics.

Multiple creditors with different, uncoordinated demands

Each creditor negotiates separately, with no complete picture of the company's obligations.

Covenants at the edge or in breach

Contractual obligations to banks are put at risk by a deteriorating business result.

Liquidity gap with no bridging plan

There's no clear plan for how the company gets through the period until stabilization.

What you get

What you get within the financial restructuring service

Analysis of position and repayment capacity

A realistic picture of obligations against the cash flow the company can generate.

Debt rescheduling plan

A proposed new repayment structure aligned with the company's real capacity.

Coordination across multiple creditors

A consistent approach toward all banks and creditors at the same time.

Negotiations on terms

Representing the company in negotiations on rescheduling, covenants and collateral.

Liquidity protection plan

Measures to preserve cash during the negotiation and implementation period.

Monitoring of agreement implementation

Checking that the agreed terms are honored by both sides.

How we work together

Introductory conversation and urgent assessment

Quickly understanding the scale of the pressure and the time available.

Analysis and plan

Drafting the rescheduling and liquidity protection plan.

Negotiations with creditors

Running coordinated negotiations with all parties.

Implementation and monitoring

Support in delivering the agreed terms.

Who it's for, and who it isn't

Who this service is for, and who it isn't

Who it's for

Companies under pressure from bank obligations — Repayment installments threaten current liquidity.

Companies with breached or at-risk covenants — Negotiations are needed before the bank triggers contractual sanctions.

Owners who want to negotiate from a position of a plan, not panic — There's a need for a structured approach to multiple creditors at once.

Who it isn't

Companies with no operational prospect of recovery at all — When the core business generates no cash flow at all, the priority is a broader viability assessment, not just rescheduling.

Situations with a single, simple loan with no covenants — A direct conversation with the bank is often enough without full engagement.

Common mistakes

Most common mistakes we see

Negotiating with each creditor separately, with no coordination

One favorable deal can undermine negotiations with another creditor.

Hiding the problem from the bank until the last moment

Early communication leaves more room for agreement than communication that comes late.

Rescheduling with no plan for how the company stabilizes further

New terms buy time but don't address the underlying cause of the pressure.

Unrealistic projections presented to creditors

A plan that isn't delivered further damages the banks' trust.

If you recognize two or more of these — it's time to talk.

FAQ

Frequently asked questions

Can debt be permanently reduced, or only rescheduled?

It depends on the case — most often it's a change in maturity and terms; principal reduction is the exception and subject to separate negotiation.

How quickly do you need to react?

The sooner the better — the negotiating position weakens with every missed payment deadline.

Do you negotiate directly with banks on our behalf?

Yes, with your full knowledge and consent on every step.

What if the operational causes of the problem aren't resolved?

Financial restructuring is combined with operational restructuring as needed, or moves into a Full Turnaround.

Does this affect the company's credit rating?

Rescheduling is recorded, but a structured and timely agreement is significantly more favorable than delay or default.

What's the difference between financial restructuring and bankruptcy?

Financial restructuring (formally also known as consensual financial restructuring) is a voluntary rescheduling of debt while the company is still solvent, aimed at avoiding bankruptcy. Bankruptcy is a court procedure that follows once that opportunity has been missed.

How much does a financial restructuring engagement cost?

It depends on the scale of the crisis and the number of creditors being negotiated with. The first conversation and initial assessment are free; we define the fee structure before the engagement begins.