Consulting / Rescue and Transitional Capital
Options when the plan has changed.
Advisory for owners facing a maturity, cost overrun, lease-up delay or lender pressure, focused on reaching a stable capitalization.
The situation
Time is the scarcest part of the capital stack.
Problems compound when they are left for the lender to discover. We review the loan documents, the asset and the owner’s position, map the realistic paths and help the owner open the right conversations early with lenders, partners and new capital.
Typical situations
- Approaching maturities
- Construction cost overruns
- Slower lease-up
- Covenant pressure
- Partner disputes
- Business plan changes
Macallan works alongside the client’s legal counsel and does not provide legal advice.
What we do
From triage to a stable capitalization.
Each engagement starts with an honest read of the position and ends with a plan the client can act on.
Capital Stack Triage
The first step is an honest picture of where things stand. We review the loan documents, guaranties and partnership agreements, the current cash position and the performance of the asset or business, and identify the deadlines that drive the timeline. The result is a short list of realistic options, each with its cost, its timing and what it requires from lenders and partners.
Maturity and Default Resolution
Lenders generally prefer a workable plan to an enforcement process, but they need to see one. We prepare the materials and help lead conversations with the existing lender on extensions, modifications, paydowns or discounted payoffs, working alongside the client’s legal counsel. Starting before a default gives the owner far more room to negotiate.
Transitional Capital
Sometimes the business plan is sound but needs more time or money than the current capital allows. We arrange bridge loans, rescue preferred equity and recapitalizations that retire or restructure the existing debt and give the owner room to finish lease-up, construction or repositioning. Each option is weighed against its cost and the control it hands the new capital provider.
Operating Business Liquidity
Companies facing a maturing credit line, covenant pressure or a cash shortfall need a plan the bank will accept and a fallback if it does not. We review the company’s financials and lending relationships, prepare the refinancing case and approach alternative lenders where needed, including options secured by real estate the business owns. The goal is to keep the business operating while the capital structure is repaired.
Discuss a situation
Earlier is almost always better.
A confidential first conversation costs little, and it often widens the options available.