Debt restructuring under a loan agreement is a fairly popular and relevant financial instrument for maintaining economic stability of a business and voluntary settlement of bad debts with a bank. This was stated by lawyer Serhiy Lysenko in an exclusive commentary to UNN.
"In general, debt restructuring under a loan agreement is a process of changing the terms of an existing loan agreement to improve the financial condition of the debtor. Restructuring is an effective and attractive financial instrument for both the creditor and the debtor to resolve the issue of voluntary settlement of bad debts and ensure financial stability of the business," Lysenko said.
According to him, loan restructuring allows entrepreneurs to avoid default and save their business, and thus save jobs. In addition, it allows businesses to create a liquidity reserve and maintain economic activity, which in turn helps maintain economic stability in the country.
The lawyer noted that, according to the law, the debtor has the right to initiate restructuring.
A debtor's voluntary request for restructuring may indicate a desire to repay its loan obligations.
However, in order for the financial restructuring procedure to begin, the borrower must provide , among other things, a justification for the need for such a procedure. After that, negotiations and approval of new terms of the loan agreement begin, which will be recorded in the restructuring plan.
The loan restructuring procedure is not easy. However, as Sergiy Lysenko noted, it is a fairly popular financial instrument and a civilized solution to problematic debts.
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It is worth noting that loan restructuring is not a panacea, but a temporary solution that allows you to buy time and stabilize your financial position. It does not eliminate the problem, but it does allow you to survive difficult times and avoid catastrophic consequences.
One of the representatives of Ukrainian business who, in response to financial difficulties, resorted to loan restructuring is the owners of the Gulliver BFC. In this case, the debt restructuring was carried out in accordance with the law, which was developed at the initiative of the IMF and provided for special safeguards to ensure that the entire process was carried out without abuse. One of them is the participation of third-party independent experts, so in this case, world-renowned companies were involved. The experts offered more than 10 restructuring options and, in accordance with the law, chose the one that would maximize the economic benefits for the involved creditor banks. Thanks to the debt restructuring and the resumption of economic activity, Gulliver Construction Company managed to stabilize the project's financial condition.
And, as the creditor, Oschadbank, emphasized, the owners of Gulliver strictly adhered to the terms of the financial restructuring before the outbreak of the full-scale war. At that time, almost all Ukrainian banks provided their clients with loan repayment holidays, and then there was a gradual process of resuming loan payments. In 2023, the owners of Gulliver returned to debt service as part of the restructuring agreement.