Debt-for-Equity Recapitalization & New-Money Backstop

Debt-for-Equity Recapitalization & New-Money Backstop

We negotiate with the fulcrum creditors, craft the plan term sheet, and backstop new-money to reset the capital structure. The deliverable is a confirmed swap with fresh liquidity, governance clarity, and a credible exit facility or ABL anchor.

The recap works when recoveries are real and the backstop is priced to fund. We map stakeholder recoveries, lock up key holders, and write the rights offering and governance terms that get the votes. Execution includes disclosure schedules, cash controls, and dated milestones to avoid drift.

Suitable Situations

Sponsors & Boards

  • Over-levered structures where equity is out of the money.
  • Need for new liquidity without losing operating stability.
  • Desire to keep control through pref or board rights.

Creditors & Funds

  • Fulcrum holders seeking fair recovery and governance.
  • Backstoppers that want clean terms and enforceable milestones.
  • ABL or exit lenders that need a sustainable post-deal profile.

Plan & Backstop Workflow

Stage Deliverable
1) Stake Map & Recoveries Recovery waterfall, valuation ranges, sensitivity, and cap table outcomes.
2) Plan Term Sheet Swap mechanics, treatment by class, governance, MIP, and covenants.
3) Rights Offer & Backstop Size, price, allocations, backstop fees, conditions, and funding timetable.
4) Exit Facility / ABL Anchor terms for working capital post-closing with reporting and dominion controls.

What You Get

Item Detail
Stakeholder Pack Cap table outcomes, recovery bands, and talking points for each class.
Lock-Up Agreements Templates and economics to secure key votes quickly.
Backstop Agreement Terms for committed capital with conditions that protect the deal.
Exit Facility TS Post-close liquidity with borrowing base and reporting cadence aligned to the plan.

Pricing & Fees

Retainer USD 50,000 to 125,000 depending on creditor count and plan scope. Success fee 3 to 5 percent on new-money raised. Equity or warrant participation may apply where leverage is high.

Expert Team

Sofia Almeida — Creditor Negotiations
Drives lock-ups with fulcrum holders and aligns recovery logic with valuation evidence.
Arjun Menon — Backstop & Rights Offers
Structures backstops that actually fund, with clean conditions and enforceable timelines.

FAQs

Can sponsors keep control?
Possible through pref, board rights, and MIP alignment if fulcrum economics are fair.
What if creditors are fragmented?
We form a steering group, secure early lock-ups, and set deadlines that reward participation.

Request Recap & Backstop Terms

Send your debt stack, valuation notes, and target funding amount. We will return a stakeholder map, plan outline, and backstop path that gets funded and closes on schedule.

Reset My Capital Structure

Disclaimer: Financely acts as arranger and advisor through regulated partners. We do not hold client funds. Any recapitalization or securities offering is subject to underwriting, KYC, AML, sanctions screening, documentation, perfected security where applicable, and approvals by relevant stakeholders. No public solicitation.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

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Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.