Debt restructuring
A company rarely has a debt problem. It has a mismatch between what it generates and what it has to pay. The difference matters, because it decides whether the answer is renegotiating terms or changing the business.
DB Consultants Group prepares and leads restructurings of financial liabilities with Panamanian banks, on the company’s side of the table.
The moment
Almost no company goes from current to overdue overnight. The warnings show up months earlier, and they show up in the numbers long before they show up at the bank.
A company that sits down with its bank while still current negotiates terms. One that sits down after the first default negotiates consequences.
The context
The Panamanian economy is growing, but credit is not following. GDP is up 4.8% year on year while credit to the private sector grows by just 0.58%, below inflation. Banks did not stop lending; they became selective. Full reading from our Observatory (in Spanish).
On top of that, the country lost its investment grade rating at Fitch in March 2024, which made financing more expensive along the whole chain. What it means for a company (in Spanish).
The practical consequence is simple: the same file that was approved three years ago is sent back today. Not because the company is worse, but because the standard of evidence has risen.
Sources: Instituto Nacional de Estadística y Censo and Superintendencia de Bancos de Panamá.

The process
A restructuring with a single bank is resolved in two to three months. With several creditors and cross-collateral, four to eight.
What the credit committee looks at
Cash projected month by month, with explicit assumptions and scenarios. Not an accounting profit and not a sales promise.
The bank needs to understand what caused the deterioration and why it will not repeat. A restructuring without a diagnosis is a postponement.
A capital contribution, subordination of shareholder loans or a cap on dividends. It is the signal that carries the most weight and the one least often offered upfront.
Current appraisals, clean title and a collateral-to-balance ratio the committee can defend internally.
Warnings
Common questions
When cash still covers interest but no longer covers principal without refinancing. At that point the company is still current and negotiates terms; after the first default the conversation changes completely.
With a single bank, two to three months. With several creditors and cross-collateral, four to eight, because they all have to be coordinated at once.
The firm prepares the file, designs the proposal and supports the negotiation. The company always decides and signs; the adviser’s role is to make sure it arrives with the evidence a credit committee needs.
Not always, but some shareholder commitment — a contribution, subordination of shareholder loans or a cap on dividends — is the signal that weighs most in a committee.
Yes, and it is usually the only way it works. Negotiating separately lets each creditor improve its position against the others and leaves the company worse off than at the start.
Then it is not a debt problem. Extending maturities only postpones the decision: the operation has to be reviewed, and sometimes the way out is selling a business line or the company. The firm also supports that alternative.
Yes. Reports, models and meetings can be delivered in English or in Spanish. The file for a Panamanian bank is submitted in Spanish, which is what the credit committee works in, and the version for the shareholder or the parent company is delivered in English.
Yes. The nature of every engagement is confidential and is not disclosed without the client’s written authorisation.
A first conversation is enough to tell whether what you have is a mismatch, a margin problem or a structural one. It is confidential and commits you to nothing.