Multi-Entity Debt Restructuring for an Industrial Group
A Swiss-based industrial group operating through three legal entities (manufacturing, distribution, and real-estate holding) experienced increasing financial pressure following rapid expansion and rising interest rates.
Over time, the group accumulated a fragmented debt structure:
- Multiple bank loans across different entities
- Short-term revolving credit facilities
- Intercompany loans
- A property mortgage with restrictive covenants
As interest costs increased and maturities approached, the existing lenders became reluctant to extend facilities.
Although the group remained operationally profitable, its debt structure no longer matched cashflow generation, limiting liquidity and strategic flexibility.
Challenges:
- Debt spread across multiple entities and lenders
- Short maturities creating constant refinancing pressure
- Rising interest costs impacting cashflow
- Restrictive covenants limiting operational decisions
- Risk of liquidity strain despite solid underlying business
PrestaFlex Approach
PrestaFlex conducted a full financial and structural diagnostic, including:
- consolidated cashflow analysis across all entities
- review of intercompany transactions
- assessment of asset values (industrial property and equipment)
- stress testing of debt service capacity
Based on this analysis, PrestaFlex designed a group-level restructuring strategy:
- Consolidation of existing liabilities into a single structured financing solution
- Reallocation of debt to the entity with the strongest cashflow
- Refinancing of short-term facilities into longer-term debt
- Partial release of restrictive covenants
- Introduction of a hybrid structure combining senior debt and mezzanine financing
PrestaFlex launched a targeted tender with selected Swiss and European lenders experienced in industrial group financing and special situations.
Outcome:
- CHF 12.8 million of existing debt consolidated and restructured
- Average maturity extended from 2.1 years to 6.5 years
- Annual debt service reduced by over 25%
- Liquidity headroom restored across all operating entities
- Improved transparency and financial governance at group level
The restructuring was executed without operational disruption and enabled the group to stabilise finances while continuing its growth strategy.
Key Takeaway
This case demonstrates how financial stress is often structural, not operational — and how expert structuring, lender selection, and negotiation can unlock sustainable solutions where standard bank approaches fall short.
