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.