Business Debt Restructuring
Restructuring of business debt through lender negotiations, revised repayment terms and, where needed, formal insolvency processes.
- Estimate Cost
- ₹50,000 – ₹5,00,000
- Typical duration
- 30 days
Service overview
Assistance to businesses facing debt-servicing pressure or seeking to reorganise borrowing.
Who needs it? / When is it needed?
Businesses with cash-flow stress, multiple lenders, overdue loans, expensive borrowing or a need to extend repayment periods.
What to expect from the WCP Professionals
The professional would map the debt stack, understand the cash-flow problem, review loan documents and security, identify covenant issues and help management negotiate a workable restructuring package with lenders.
How the work would proceed:
- The professional would prepare a debt schedule showing each lender, outstanding amount, security, repayment date, default status and covenant
- They would compare the schedule with a realistic cash-flow forecast, identify the payments the business can sustain and prepare a proposal for lenders
- If negotiations progress, they would review revised terms and security documents, identify necessary corporate approvals and coordinate filings
- Restructuring remains subject to lender consent and the viability of the underlying business
Key deliverables
Debt matrix, restructuring proposal, lender correspondence, revised term sheet, amended financing documents and implementation checklist.
Standard turnaround time
Initial debt review: 5-10 working days. Negotiation and restructuring may take several weeks or months.
Government fees, timelines & key outcomes
- No government fee for a private lender negotiation
- Court, NCLT, IBC or registration fees arise only if a formal proceeding or security filing is undertaken
- A successful restructuring may reduce near-term repayment pressure without necessarily writing off the debt
Forms & filings involved
Board resolutions, amended financing documents, charge-related MCA filings and, where relevant, IBC applications and prescribed forms.
Documents required
Loan agreements, sanction letters, security documents, repayment schedules, financial statements, cash-flow forecasts and lender correspondence.
What we need from you
Accurate debt information, lender contacts and an honest assessment of expected cash generation.
Important conditions
A restructuring proposal has little value unless the underlying business can realistically service the revised debt.
Additional information
Where default has progressed significantly, IBC options may need to be assessed.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
What is a one-time settlement?
An agreement with a lender to settle an outstanding loan for a negotiated amount, usually paid in a lump sum or short instalments.
Can MSMEs use pre-packaged insolvency?
Yes. The IBC provides a pre-packaged insolvency process for MSME corporate debtors, combining negotiation with NCLT approval.
What happens to personal guarantees?
Guarantors remain liable unless released; restructuring should address guarantees explicitly.
When should a business seek restructuring help?
As soon as repayments become difficult — before the account becomes an NPA and recovery action begins.