The Banking and Corporate Finance Training Specialist

Advanced Debt Restructuring

This course is presented in London on:

19-20 March 2018, 20-21 November 2018

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Course Overview

Participants will: Fundamental concepts in early problem loan workout Early Warning Signals in spotting potential problem loans

International classifications of problem loans The fundamental methods and application of successful restructuring and rescheduling

The key methods that can be applied to successfully restructuring debt facilities The aims of the problem client

Application of international frameworks to management the restructuring process The importance of believing the restructuring strategy and the need for the

independent business review

The use of forecast cash flows in identifying the key risks of the recovery strategy and in assessing the client’s ability to honour its debt service going forward.

The use of the ‘Standstill’ process in controlling the credit recovery process The application of the Standstill Agreement and the cooperation of the other creditors Key security and guarantees required in securing the lender’s position

Since June 2013, the trainer has been providing regular Debt Restructuring training to

senior members of the banking team at the European Investment Bank in Luxembourg. For the past 14 year the trainer has provided training programmes to some of the world’s

largest financial institutions. Cooperating with a number of leading training companies, he has trained delegates from some of the largest industrial and financial institutions across the Middle East, Far East, Europe and Southern and Eastern Africa. He also lectures in a

number of professional papers for the ACCA and CIMA examination boards at the Tianjin University of Finance and Economics, the leading Business School in China.

In parallel to his training, the trainer also has a 24-year career in Banking and Finance that originated in the City of London and has specialised in credit risk analysis, debt structuring

and problem loan workout and debt restructuring for international corporate clients. He has worked with a number of the world’s leading financial institutions providing lending facilities

or private placements worth over US$ 5 billion to the corporate sector. It is this practical, hands on experience of credit risk analysis and balance sheet restructuring that he brings to his professional finance workshops.

Before embarking on his career in banking he acted as an Economic and Political Adviser

to the Prime Minister of the Slovak Republic.

Day 1

Session 1 Introduction to Debt Restructuring – Key drivers Non-performing loans and the challenges faced by bankers

When to recognise the non-performing loan How to deal with problem clients that have not defaulted

Introduction to a framework to deal with covenant breaches Review of common reasons for company default and the creation of non-performing

loans

Course Objectives

Course Content

Background of the trainer

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Understanding the attitude of problem clients and the difference between ability to pay and willingness to pay

When to restructure / reschedule and when to accelerate.

Workshop – Advanced discussion of different alternative scenarios in dealing

with loans in default and covenant breaches from case study examples.

Session 2 Early Warning Signals of potential distress Review of key financial EWS

Danger levels of different financial covenants in different industries EWS derived from the financial statements

Identification of the manipulation of the financial statements Using univariate and multivariate frameworks to identify financial distress Application of the Z Score to distressed scenarios to identify potential failure

Review of the IFC’s classification and check list of Early Warning Signals The importance of identifying key external factors affecting corporates

The application of GNPESTEL model to external risk analysis Systemic risk and its impact on problem loans Identifying defects and mistakes committed by the company ahead of time

Management risk and its impact on corporate recovery Interrogating problem management and understanding gaps and areas for

improvement The role, power and limitations of the lender in restoring management effectiveness Strategic risk and its impact on the problem client

Workshop – Delegates in their project teams will analysis the EWS and external

and qualitative risks facing a case study problem loan, providing recommendations for how a lender could seek to improve those risks and protect

itself from potential risk crystallisation.

Session 3

Identifying work out solutions versus insolvency solutions The importance of understanding whether the problem loan can be ‘worked out’ as a

going concern The importance of and belief in the recovery strategy Using cash flow forecasts to believer the business plan and recovery strategy

Expectations of financial performance and financial covenants under the recovery strategy

Deciding whether to leave the borrower in collateral possession or not Application of the Butler Matrix The IFC framework for problem loan resolution

The use and application of sensitivity analysis in understanding the strength of the company’s recovery plan.

Case Study Workshop – During this session, the delegates will be given a case

study project complete with forecast financial projections designed by management. Having applied the Butler and IFC frameworks to the case study, the delegates will use the excel financial model provided by the trainer, to

undertake a sensitivity analysis of the forecasts financials. The aim will be for the

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attendees to assess whether they believe the company’s recovery strategy and

its ability to honour the restructured loan’s debt service going forward.

Session 4 Different restructuring and recovery methodology

The concept of automatic stay and protection of the going concern from other creditors

Administration Receivership Liquidation

Automatic stay in administration Different rescue procedures

Cram down of creditors Position and rights of management

Personal liability of directors Ranking and claims of creditors Time limits of filing claims

Introduction to Standstill Agreements and controlling the banking syndicate

Case Study Workshop – During this session the attendees will review a new case study and review the potential application of the different recovery methodology discussed during the session. The delegates in their project groups will also

assess how they need to engage with other creditors and assess the drafting of a standstill agreement for the problem loan restructuring.

Day 2

Session 1 Implementing the Restructuring process

Understanding different stakeholder objectives Creating the restructuring team

The 10 point plan for effective restructuring The case for and against a moratorium Mediation

Workout arrangements and responsibilities within the lending institution Protecting security throughout the workout

Financial projections and sustainable cash flow and debt The importance of the Independent Business Review Negotiations and pricing the workout

Session 2

Workshop – Having reviewed the implementation process and the various worked

examples developed during the session, in their project teams the attendees will review a new major new case study problem loan complete with financial forecasts in an excel financial model. In order to assess whether they would

proceed with the restructuring, the attendees will draft the Scope of Works for an Independent Business Review as part of their initial analysis

Sessions 3 & 4

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Final Case study - Implementing the restructuring process in practice.

Final Case Study Workshop – Using a new case study, the attendees working in their project teams, will provide a complete restructuring / workout solution to the problem loan on the basis of the information covered during the course. They

will required to identify the key EWS inherent in the problem loan, review the sensitivity of the forecast financial projections in the excel model and propose a

schedule of the restructured loan. The team will also include terms of a Standstill Agreement, if required. A selected team will asked to present their restructuring solution to the rest of the delegates.

In a low interest rate environment, bankers and financiers are under increased pressure

to undertake more corporate business at higher returns, but at the same time ensuring a low risk weighting. Given that the business climate remains uncertain and volatile, the risk

for bankers of developing problem loans through their lending activities, is therefore increasing.

This course has been designed for bankers and financiers to develop a holistic, applied approach to early problem loan workout through a range of different techniques currently

applied in UK and international finance. It aims to provide the attendee with a comprehensive overview of the challenges of problem loan workout and with an insight into some of the key methods than can be implemented to assist in the recovery of their

financial exposure.

By offering a range of different case studies, financing scenarios and potential solutions to workshop case studies, the attendees will be able to develop a broad applied overview of

debt restructuring techniques. This is particularly important in an area of finance where ‘one size fits all’ solutions are not possible and where the financier needs to be open minded, flexible and quick to react to changing circumstances.

The programme draws from the experience of a range of different high profile debt

restructuring case studies as well as the experience and project work of the trainer’s 23 year experience in debt structuring, restructuring and problem loan workout. A number of the case studies used during the course are those that have been undertaken directly by

the trainer.

The course is highly interactive, with the course attendees working in project teams. They will be required to work in their project teams in devising solutions and providing recommendations to the rest of the delegates who will cross examine their proposals in a

credit committee environment.

During the second day of the programme, the attendees will use forecast cash flow analysis as part of the strategic business review for the restructuring candidate. A knowledge of the working of Microsoft excel with therefore be an advantage for the attendees.

Course Summary

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What Redcliffe’s clients are saying about the course and our trainer

“The course was very well structured and presented. I learnt new techniques that I could apply to my work”

“The presentation was excellent with a lot of examples and case studies”

“Extensive coverage of multiple topics, matching with relevant case studies and insights”

09:30-17:00

London

Standard Price: £1,300 +VAT Membership Price: £1,040 + VAT

09:30-17:00

London

£625 +VAT (£750)

In-House Training

Delivering this course in-house for a number of participants could be very cost effective.

The venue and timing can be agreed to suit the client, as well as the selection of the trainer and the

precise contents of the seminar.

E-Learning

This course can also be presented as a bespoke e-learning programme created by you to fit your exact requirements.