Restructuring that preserves the business
Lighthouse helps businesses and their stakeholders restructure complex financial obligations. Renegotiate terms, rebuild balance sheets, and execute recapitalizations that preserve maximum enterprise value. Having advised companies, lenders, and investors across hundreds of engagements, we understand what every party at the table is thinking, what they need, and what they'll accept.
Financial clarity for the most complex capital structures.
1. Out of Court Restructuring: Negotiating forbearance agreements, covenant modifications, and debt-for-equity conversions that preserve stakeholder relationships and minimize operational disruption.
2. Creditor Advisory: Lender & Investor Advisory: Representing lenders, secured creditors, and investors in restructuring negotiations to protect and maximize recovery.
3. Recapitalization Transactions: Structuring and executing recapitalizations including debt-for-equity conversions, rights offerings, new equity infusions, and balance sheet restructurings that reset the capital base and position the business for sustainable operations.
4. Assignment for Benefit of Creditors (ABC): Assignment for Benefit of Creditors (ABC): Managing orderly disposition of assets through state-law proceedings, often faster and less expensive than formal federal alternatives.
5. Capital Structure Analysis: Capital Structure Analysis: Evaluating and recommending optimal capital structures for businesses carrying unsustainable leverage.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team
What restructuring actually looks like
An out-of-court restructuring typically begins with a thorough assessment of the company's obligations, cash position, and lender relationships. From there, we negotiate directly with creditors to modify terms like forbearance agreements, maturity extensions, covenant resets, or debt-for-equity conversions. The process is faster, less expensive, and more confidential than formal proceedings, though it requires a degree of creditor cooperation and a viable core business.
Recapitalization is typically appropriate when the business is operationally sound but carrying a capital structure that no longer fits its cash flow profile — often the result of acquisition debt, a revenue decline, or a market shift. If the underlying business generates value and stakeholders are willing to negotiate, a recapitalization can reset the balance sheet without the cost and disruption of a formal process.
Yes, though not in the same engagement. Our experience advising both companies and their capital providers gives us a nuanced understanding of stakeholder dynamics that makes us more effective regardless of which party we're working with. Restructuring decisions are time-sensitive. Let's evaluate your options before they narrow.
A default notice doesn't mean the window has closed but it does mean the timeline has compressed. Lighthouse regularly steps into engagements where a lender has already accelerated debt or initiated enforcement proceedings. Our first priority is stabilizing the lender relationship through direct communication, a credible assessment of the situation, and a realistic proposal for resolution. In many cases, we're able to negotiate forbearance agreements or standstill periods that create the space needed to develop and execute a restructuring plan.
Timeline depends on the number of lenders, the complexity of the capital structure, and whether an operational turnaround is running in parallel. A straightforward forbearance negotiation with a single lender can be resolved in weeks. A multi-lender recapitalization with intercreditor issues typically takes 60 to 120 days. We set realistic expectations early and compress timelines wherever possible.
