When a project's debt can no longer be serviced and the conventional path is closed. Sale, strategic investment, or turnaround capital — three structures, three different futures for the asset. FINKOI frames the choice with the trade-offs explicit.
A project in workout territory has usually exhausted its immediate options — the construction lender is at covenant limits, the NBFC facility is due for renewal and the lender is reluctant, pre-sales have stalled, and the promoter's personal balance sheet is under pressure from guarantees. The instinct at this point is to move quickly — take the first offer, agree to the first term sheet, accept the first restructuring proposal.
That instinct is understandable and almost always wrong. The first offer in a distressed situation is priced for the seller's urgency, not the asset's value. The first restructuring proposal reflects the lender's interests, not the promoter's options.
FINKOI's role in a stressed-asset mandate is to slow down the decision enough to see it clearly. To model each pathway — sale, strategic investor, turnaround capital — as a distinct deal structure, with the economics of each laid out side by side. The decision that follows is then a strategic choice, not a forced move.
The right pathway depends on the promoter's objectives, the asset's fundamentals, and the lender's appetite. We model each before recommending any.
A clean exit — the asset is sold, debt is repaid, and the promoter retains whatever equity remains after settlement. The right answer when the turnaround thesis is weak or the promoter's capacity to execute it is exhausted. We structure the sale process to maximise proceeds, not minimise transaction time.
A well-structured strategic partner brings capital and — ideally — capability. The promoter retains equity and operational involvement; the investor takes preference returns and governance rights proportionate to the risk they're absorbing. We design the term sheet on the promoter's side, not the investor's.
Where the asset has genuine path to recovery and the promoter has the capacity to execute, fresh capital — structured to the turnaround thesis rather than the original project assumptions — can restart the project. This requires a credible plan, the right lender, and a structure that gives the project enough runway to deliver.
In a stressed situation, the most valuable work often happens before the first term sheet is signed. FINKOI's contribution at this stage is diagnostic and structural — not transactional.
Asset assessment — What does the project actually look like today? Construction status, pre-sales register, lender position, legal encumbrances, regulatory status. The facts, not the promoter's narrative or the lender's.
Pathway modelling — Each of the three pathways modelled as a deal structure, with economics side by side. What does the promoter walk away with in each scenario? What does the lender recover? Where are the negotiating leverage points?
Lender negotiation support — Where the lender is pushing for a particular resolution, we provide the analytical counterpoint — what the promoter's alternatives are, and what a fair restructuring looks like given the asset's actual position.
Capital arrangement — Once the pathway is chosen, we execute on it. Finding the strategic investor, structuring the term sheet, identifying the turnaround lender and designing the facility around the recovery thesis.
"The advisory value in a stressed mandate often sits as much in framing the choice as in arranging the eventual capital. The promoter who understands their options makes a better decision — and usually a better deal."
Clarity on our role is as important as clarity on the asset. Stressed-asset mandates work best when the promoter understands what they are engaging for.
Share the situation — asset status, lender position, what's been explored so far. We'll come back with an honest assessment of the options and what each one actually looks like.
