If a debtor’s insolvency is further undermined by its financial distress caused by the inherent risk of the economic cycle or its operation, a debt crisis may ensue. A debt crisis occurs when the debtor cannot pay off its loans (including loan assets formed through project financing, asset financing, or general liquidity lending) granted by a commercial bank or any other lending institution.
King & Wood Mallesons’s (KWM) banking and finance team has actively assisted creditors in disposing of such risky assets through various means, one of which is debt restructuring. With extensive experience in debt restructuring, KWM has assisted creditors in conducting thorough investigations and determination of debtor's assets and liabilities, designing viable debt restructuring plans, and making changes to the original debt elements in all parties' interests. In addition, our team is particularly adept at handling complex projects involving new guarantors or cross-border financing.
