RESTRUCTURING & EXIT FINANCE GUIDE

Restructuring & Exit Finance Guide

A practical guide to refinancing, maturity management, transitional capital and exit finance for real estate situations requiring a new capital solution.

What restructuring and exit finance is designed to solve

Restructuring and exit finance is relevant where an existing capital structure no longer matches the asset, business plan or required timetable. Common drivers include debt maturity, covenant pressure, delayed sales, incomplete stabilisation or the need for additional time to execute an exit.

The financing case depends on current value, existing security, creditor position, remaining capex, cash flow, sponsor support and a realistic path to repay or refinance the new facility.

USE CASES

Typical restructuring and exit situations

Debt Maturity

Replacing a maturing facility where the asset or business plan needs more time.

Development Exit

Refinancing after completion while sales, leasing or investment refinance is still progressing.

Stabilisation Finance

Transitional capital while occupancy, income or operating performance is improved.

Creditor Refinance

Replacing one or more existing creditors with a new structure and agreed security package.

UNDERWRITING

What restructuring lenders typically assess

Existing Debt

Outstanding balances, maturity, accrued interest, creditor rights and existing security.

Current Value

Asset value and downside liquidity under the current condition and business plan.

Cash Requirement

Amount required to refinance creditors, fund capex, interest reserve or transaction costs.

Sponsor Support

Additional equity, guarantees, subordinated capital or other sponsor commitments.

Execution Risk

Remaining construction, leasing, sales, legal or operational steps required before exit.

Exit Strategy

A credible and time-bound repayment route supported by evidence rather than aspiration.

CAPITAL STRUCTURE

Common restructuring structures

Refinance Bridge

A new first-ranking facility replacing existing debt and providing time to execute the exit.

Bridge + Capex

Refinancing combined with controlled funding for remaining works or stabilisation.

Interest Reserve

Capital reserved to service interest during the transition period where cash flow is insufficient.

Layered Capital

Senior debt combined with subordinated or sponsor capital where the full requirement cannot be met by one lender.

EXECUTION

A restructuring must improve the path to exit

Simply extending time is rarely enough. A credible structure links new capital to specific actions such as completion, leasing, sales, asset disposal, covenant repair or refinancing milestones.

Early visibility on creditor balances, security and intercreditor issues helps avoid execution delays and allows the new lender to assess what must happen at closing.

LENDER / INVESTOR READY

Preparing a restructuring or exit financing

Current Debt Position

Lender statements, balances, maturity dates, accrued amounts and security documents.

Asset Valuation

Current value and, where relevant, value after completion or stabilisation.

Sources & Uses

Clear breakdown of creditor repayment, fees, capex, reserves and sponsor contribution.

Business Plan

Remaining actions, budget, timing and milestones required before exit.

Creditor & Security Map

Overview of mortgages, pledges, guarantees and any ranking or consent issues.

Exit Evidence

Sale process, refinancing case, leasing progress or other evidence supporting repayment.

FAQ

Restructuring & exit finance questions

Is restructuring finance only for distressed assets?

No. It can also be used for performing assets where timing, maturity or capital structure no longer aligns with the business plan.

Can a new lender refinance several creditors?

Potentially. The feasibility depends on creditor balances, security rankings, settlement mechanics, value and the new lender’s required security.

Can remaining capex be funded?

Yes, where the lender accepts the completion or stabilisation plan. Capex may be controlled through drawdowns and monitoring.

What makes an exit credible?

A credible exit is supported by evidence such as a realistic sale process, refinance metrics, stabilised cash flow, buyer interest, completed milestones or committed sponsor support.