Informal Debt
Negotiation Services

Talking to your creditors can be a tricky ordeal. Let us do the talking.

What is an Informal Negotiation?

The aim of informal negotiation is to negotiate a settlement with one or more creditors for less than the full amount of the debt. To demonstrate the company’s ability to pay and negotiate the time needed to catch up on creditors, cashflow forecasts and other supporting documentation is usually prepared.

Our approach is to complete a detailed financial assessment of the company and identify what return would be available to creditors if they pursued legal action instead. While some creditors can be litigious, most are not. Most creditors would prefer not to have to incur the legal fees or go to court if they have a reasonable alternative.

  • Analysis

    When is an Informal Negotiation an option for me?

    If a company has insurmountable debts and if getting additional finance is not an option, the director could try to negotiate a settlement with the company’s creditors. We do a lot of negotiation work for our clients as part of our overall strategies.

  • Negotiations

    The difference between informal and formal negotiations

    The advantage of informal negotiation is that it is often considerably cheaper in terms of professional fees than formal negotiations (such as Debt Restructuring or Deed of Company Arrangement). The disadvantage is that sometimes it is necessary to have every creditor agree for the plan to be viable, and one hostile creditor can derail the whole process.

See How We Help

Did You Know?

Commercial Necessity Phoenix is legal and recognises the fact that sometimes the need to restructure (phoenix) may arise out of events outside of the business owner’s control. This type of phoenix is considered a business rescue.

Business Restructure

How it Works

If you are considering a business restructure, de Jonge Read will review your situation carefully. We consider both business and personal aspects.

We then prepare a written recommendation, specifically designed to your unique circumstance on how to achieve the best outcome possible for you and your business.

We do this obligation-free and at no cost to you!

  • 1 Schedule a free consultation with one of our strategists
  • 2 A no-obligation tailored strategy is prepared to suit your individual circumstances
  • 3 If you decide to proceed, you’ll have a Strategy Support Officer assigned to you. Our team is here to hold your hand throughout the whole process