Editing Debt restructuring (section)

== Corporate restructuring ==
As the incidence of corporate failures has increased in part due to current economic climate, so a more "standard" approach to restructuring has developed. Although every case has unique characteristics, the process of restructuring follows a number of important phases. Initially, declining financial performance will cause key financial covenants - for example, [[leverage ratio]]s - along with the company's underlying cash position to become tight and the prospect of the company needing to restructure will become more obvious to creditors and the debtor alike. This triggers a gathering of creditors and other stakeholders, in anticipation of a breach of [[financial covenants]], a crisis of [[liquidity]], or impending debt instruments coming due that will not be able to be refinanced, all of which could be the impetus for a bankruptcy taking place if not rectified.<ref>{{Cite web|last=|first=|date=|title=Restructuring Investment Banking 101|url=https://restructuringinterviews.com/blogs/restructuring/restructuring-investment-banking-101|url-status=live|archive-url=https://web.archive.org/web/20200929111933/https://restructuringinterviews.com/blogs/restructuring/restructuring-investment-banking-101 |archive-date=2020-09-29 |access-date=2021-01-15|website=Restructuring Interviews}}</ref>

The lending group (typically comprising corporate finance divisions of banks) will normally commission a corporate advisory group to review the business and its financial position. This will form the basis of any restructuring of facilities. The lending group will typically appoint a [[Corporate Restructuring Officer]] (CRO) to assist management in the turnaround of the business, and embracing the recommendations presented by the banking group and the corporate advisory report.