We restructured the debt of a company…

• In an initial meeting with Abexa, the owners and general manager of a company mentioned their need to restructure the company’s financial liabilities. It was clear to the manager that their short-term debt forced them to roll it over permanently, thus reducing the margin to manage the business.
• Firstly we made a diagnosis of the company's situation from our perspective: we evaluated its financial equation, sustainability, consistency and flow of expenses.
  
• From that point on, we evaluated a minimum volume of debt for an acceptable term of no less than three years, and at the same time we determined that costs should be slashed by around 8% to be able to pay out the interest.
  
• Along with the diagnosis we analyzed an improvement plan whereby short-term and high-impact issues were prioritized. Over the first two months we quickly reached our goal of a 5%-reduction in expenses.
  
• Below we provide a detail of a presentation for banks, which included:
  • A debt proposal showing the business benefits and sales growth projections over time.
  • The three-year plan we had developed and the company’s financial flow to make the debt sustainable.
  • A consolidated analysis of the company's assets, which were sufficient collateral for the loan so that repayment of the debt could be scheduled within a reasonable time frame.
• After this round of presentations, one of the banks showed interest in the transaction and led a syndicated loan that unified the guarantee requirement. Under this modality, four banks made the loan we had requested and we were able to extend the repayment term to 5 years.
• The financial consolidation we achieved fostered the company development and resulted in a subsequent sale of the controlling interest, which was also managed by Abexa.