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Request for proposal

      KPMG has significant experience of debt restructuring engagements in Ukraine, having provided financial advisory services for many of the major local debt restructuring projects involving billions of dollars’ worth of debt, as well as work on smaller projects.

      We have extensive knowledge of the specific aspects of working with major international and Ukrainian banks, including state banks, and we understand their requirements and expectations in the restructuring process.

      Our work has earned us an excellent reputation among the biggest international banks.

      Under what circumstances can KPMG in Ukraine’s specialists help you?

      • Your debt service and repayment obligations exceed the cash flows generated by your business
      • Some of the financial covenants stipulated in the loan agreement have been violated or are expected to be violated in the near future
      • The cost of borrowed credit financing has become significantly higher than the market average and you would like to initiate a refinancing procedure.
      Yuriy Fedoriv
      Yuriy Fedoriv

      Partner, Advisory, Head of Turnaround and Restructuring, Head of Financial Services

      KPMG in Ukraine

      Request for proposal

      Your questions

      • What debt solutions are acceptable to the creditor bank in the current situation?
      • What realistic debt servicing and repayment arrangements may be adopted given your company’s current financial position and forecasts for the future?
      • What debt solutions are acceptable to the creditor bank in the current situation?

      How can KPMG help businesses in your debt restructuring?

      • Development of a business plan and financial model

        Before developing specific restructuring options, a robust cash flow forecast needs to be prepared. To this end, we review the current situation at the company and market trends before carrying out a thorough analysis of management’s existing plans and assumptions. At this stage, we typically develop a financial model of the company which then serves as a key tool in the restructuring negotiations. If the company already has a financial model, we test it and make any necessary adjustments before using it as a basis for updated forecasts.

        We also help the borrowing company to stabilise its operations by analysing short-term liquidity, optimising working capital, analysing necessary investments (especially mandatory investments), and analysing key business areas, all of which will improve both short- and long-term cash flows.

      • Negotiations with creditors

        We take part in negotiations with creditors jointly with the company: organising general meetings of creditors and holding personal meetings. We facilitate the company and its creditors to find a common language, establishing an information exchange that ultimately reaches a solution that takes into account the interests of all parties in the negotiation process and, above all, the interests of your company.

      • Developing debt restructuring options

        After developing a robust cash flow forecast, we work with the client to identify debt restructuring options acceptable for the company, performing scenario modelling for each one. The restructuring proposal made to the creditors includes a description of the situation, the business plan developed, and the debt restructuring options proposed by the company. If necessary, we support you in negotiations with the bank by organising a presentation regarding the debt restructuring proposal and acting as a moderator.

      • Drafting a restructuring legal structure

        After agreeing on the terms of the restructuring, we draft the legal structure of the transaction in a manner that optimises document flow and minimises risks for the company. If necessary, we engage lawyers specialising in contract law to prepare draft documentation.

      • Follow-up support

        Once a restructuring agreement is signed, it is typically necessary to provide certain forms of reporting to creditors and monitor compliance with covenants. We help the company to agree with the creditors on an acceptable format, frequency, and scope for providing data and, if necessary, participate in their preparation.