Debt Restructuring and Problem Loan Workout for Large Corporates

The principal objectives of this programme are to provide delegates with a developed understanding of the different steps that bankers can undertake in restructuring and recovering problem loans as part of Early Recovery, Work Out and Restructuring. We will review a wide range of international best practice restructuring techniques that can now be applied to problem loans internationally, assessing different legal practises in the U.S., European and UK market,  applying these practises to  workshop case study problem loans, seeking to maximise the recovery of the bank’s exposure.

• Assessing causes of different types of corporate loan default in corporate clients.
• Apply a decision tree to understand what action can be taken when the client defaults.
• Assessing which action to take: Restructuring, Turnaround and Workout or Recovery
• Review content of different bankruptcy laws in U.S, UK and Europe and what these means for how restructuring can be undertaken
• The need for working with legal counsel at every stage of the restructuring process
• Understanding when a problem loan can be salvaged and when it can’t.
• Steps needed during the liquidity crisis in problem company and business stabilisation
• Importance of undertaking the restructuring properly to avoid ‘extend & pretend’.
• Full review of all potential restructuring options that can be taken by the banker.
• Review of financial restructuring v operating restructuring and when both are required Application of the IFC Corporate Recovery framework for problem loans
• Review of the formalised restructuring processes in international best practise.
• How to deal with management as part of restructuring – Butler’s matrix application
• The value of the Independent Business Review (IBR) for the best recovery outcome.
• Designing the scope of works for the IBR to suit a successful restructuring process
• Using cash flow forecasts to understand the feasibility of the client’s recovery strategy
• Choosing the best restructuring strategy in terms of long-term cost / benefit
• Managing other bilateral lenders including use of Standstill agreements
• Corporate recovery and steps used internationally to accelerate claims against a corporate client.
• The importance of managing stakeholders for the successful implementation of the restructuring plan. (Selling the restructuring plan)