Abstract

The report highlights the various ways in which projects can become distressed, in either a financial manner or a non-financial way. The report then makes a distinction between financial distress and non-financial distress and suggests solutions for mitigation purposes. The importance of the role of project finance in the life of a project is also projected. An introduction is also provided showing the importance of project finance to the world economy, especially in the financing of large-scale, expensive, and high-risk projects. The parties to project finance are also identified, and the roles they play in the life of a project are highlighted. Furthermore, an analysis is provided of the various restructuring approaches that could be used to deal with financial distress based on researched indicators for distress.

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