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Applied Debt Restructuring

Learn and develop a holistic, applied approach to early problem loan workouts for lenders

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Live virtual class | Delivered over two full-day sessions | 15 CPD hours

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In-house pricing available – often more cost-effective for teams of 10+
pdf Download:   Course Outline

DAY 1

Session 1 - Introduction to Debt Restructuring – Debt Restructuring principles

  • Overview of the current severe economic climate and its impact on corporate clients in light of high inflation and surging global interest rates
  • Review of the current position of the leveraged loan market and the rising tide of problem loans and corporate insolvencies in 2024 and 2025
  • Analysis of why companies fail and the different stages of the crisis that companies can go through on the road to failure
  • An analysis of different reasons for restructuring (not only because of default)
  • The danger of ‘covenant light’ loans and the inability of banks to take control of problem loans; why thorough due diligence and monitoring are the key to avoiding problem loans
  • How to avoid problem loans as part of original due diligence and effective monitoring
  • Applying John Argenti’s theory to due diligence and monitoring, identifying defects and mistakes in the client and taking action to correct them.

Workshop – Advanced discussion of alternative scenarios in dealing with loans in default and covenant breaches from case study examples. Using the case study of the collapse of the international contractor, Carillion and other high-profile corporate failures, to learn how things can go wrong.

Session 2 – Leading and Qualitative Early Warning Signals of potential distress – what to do next?

  • Review of the International Finance Corporation’s (IFC’s) key EWS categories (Operating, Business, Financial, Investment and Reporting EWS)
  • The liquidity crisis is the final stage of a company's collapse
  • Poor liquidity and EWS finance due to poor working capital management
  • Management activities and over-trading – how to spot them
  • Assessing management planning for working capital management
  • Review and Application of the Z Score to distressed scenarios to identify potential failure
  • The application of the GNPESTEL model to external risk analysis in the context of the global economy in 2025
  • Introduction to Management risk (trustworthiness as well as capability) and its impact on corporate recovery
  • Interrogating problem management and understanding gaps and areas for improvement in their capabilities as part of the debt restructuring process
  • Strategic risk and its impact on the problem client.
  • The importance of understanding whether the problem loan can be ‘worked out’ as a going concern, and the belief in the recovery strategy
  • How to assess whether the problem loan client can be made viable or not
  • Assessing when to ‘pull the trigger’ on the problem client
  • The importance of avoiding ‘Extend and Pretend’
  • Introduction to ‘Going Concern Solutions’ and why these are preferable to liquidation if the client is potentially viable over the medium term
  • Use and application of a problem loan decision tree to assess potential recovery strategies and the action that the banker can take

Workshop – The delegates in their project groups will work through the case study of a company that is in technical default (but not material default) and is showing increasing signs of financial distress. The delegates will be required to provide a solution to the problem and identify which courses of action they would need to take with client management to prevent the problem loan from defaulting.

Session 3 – Review of different Debt Restructuring Options and frameworks aimed at maximising the recovery of the bank’s exposure

  • Reviewing different types of problem loan workout and corporate recovery
  • Assessing the two main elements of corporate restructuring, namely financial restructuring and organisational restructuring
  • Understanding when financial restructuring is not enough and the need to solve the root cause of the problem through operational restructuring
  • When the problem loan is only potentially viable, and why undertaking the operational restructuring is an essential first step before financial restructuring can be completed
  • Emergency action is required to stabilise the problem loan client and prevent its financial collapse
  • When and who should provide emergency funding to save the going concern in the immediate stages after default
  • Review and application of the IFC’s restructuring framework to identify the preferred strategy for the problem loan working (going concern versus divestment)
  • Key Questions that the banker needs to ask about the problem to assess the choice of the recovery strategy
  • The overriding importance of trusting management to engage and cooperate with the bank during the restructuring process
  • What to do in the event of management not being cooperative
  • The advantages of ‘in court’ and ‘out of court’ divestment/settlement of the problem loan
  • Review of the increasing use of debt sale as an exit route, its advantages and disadvantages
  • How to deal with management during the corporate restructuring process
  • Application of the Butler Matrix to assess options for dealing with the distressed company’s management

Workshop – Delegates in their project groups will analyse and provide solutions for another problem loan case study. The group will apply the IFC framework to the case study to assess which potential restructuring/recovery strategy best fits the bank’s aim of maximising its existing loan exposure. They will then use Butler’s Matrix to assess the best options to deal with management during the restructuring process to protect the bank’s interests.

Session 4 – Restructuring the problem loan and assessing the Serviceable and Non-Serviceable elements of the outstanding exposure

  • The process of assessing the recovery strategy proposed by management
  • The importance of the banker having fundamental credibility and the feasibility of the recovery strategy
  • The importance of assessing the forecast free cash flows (and DSCR) of the recovery strategy with management in detail
  • Assessing the income-generating ability of the loan and evaluating the potential for financial restructuring within the bank’s portfolio
  • Using cash flow forecasts to calculate the total serviceable amount of the loan that can be repaid through the recovery-free cash flows
  • Assessing what recovery strategies can be implemented for the unserviceable elements of the loan
    • Debt-to-equity swaps, debt-to-asset swaps, debt haircut, PIK, etc.

Workshop – Delegates will review an applied debt restructuring case study of a company problem loan in the tourist sector and how the financing bank dealt with the serviceable and non-serviceable elements of the outstanding exposure of the problem loan. We will then assess the recovery strategy and resulting financial forecasts of a new case study of the problem loan to assess the serviceable and non-serviceable elements. Project teams will be required to provide solutions for both elements of the restructured loan, including how they might deal with the non-serviceable element of the loan.


   

DAY 2

Session 5 – The Bank's Divestment of the Problem Loan – In-court and out-of-court recovery methodology

  • A review of the advantages and disadvantages of in-court and out-of-court settlements in debt restructuring
  • The concept of the automatic stay and how it can protect the interests of the creditor
  • The importance of the ranking of claims in the debt restructuring process
  • Different methods of corporate recovery from Receivership, Administration and Insolvency in the UK
  • The impact on UK insolvency procedures resulting from the Corporate Insolvency and Governance Act 2020
  • When creditors can use the principle of ‘cram down’ of minority lenders across different jurisdictions
  • Duties of managers and directors during the restructuring process, and how management can be treated across a wide range of European jurisdictions
  • Personal liability of directors
  • Understanding the ranking and claims of creditors, and how we need to assess the outstanding exposure of other creditors when evaluating the bank’s exposure recovery
  • Time limits for filing claims in key jurisdictions
  • The importance of cooperation with other bilateral lenders and the avoidance of unilateral debt recovery by other lenders of syndicate partners
  • Introduction to Standstill Agreements and controlling the banking syndicate
  • The popularity and effectiveness of Company Voluntary Agreements
  • Examples of successful international CVAs in recent years
  • The use and effectiveness of Pre-packaged Insolvencies (Pre-packs) in certain jurisdictions

Case Study Workshop – Participants will review a range of case study scenarios, including International CVAs and assess the potential application of the different recovery methodologies discussed during the session. Project groups will also determine how they need to engage with other creditors and assess the drafting of a standstill agreement for the problem loan restructuring.

Session 6 - Implementing the Restructuring process – The five-stage framework

  • Reviewing the importance of managing the restructuring process
  • Review of a key five-stage framework to implement a successful restructuring process
  • Understanding different stakeholder interests and how to manage them as part of the process
  • The case for and against a moratorium/restructuring of the problem loan
  • Review of stage 1 of the process – acquisition of data to understand the depth of the problem facing the defaulted client and the strength of the bank’s security and guarantees
  • Review of a data checklist to ensure that the banking team has sufficient knowledge to begin drafting the strategy for debt recovery
  • Studying the company’s financial position and any recovery financial projections to assess the potential sustainability of future cash flows and debt repayment through the going concern
  • An evaluation of the use and application of the Standstill Agreement as part of the restructuring process
  • What should be undertaken during the Standstill period
  • Review of the content of a Standstill Agreement entered into by creditors
  • Review of the management process (Steering Committee process) implemented as part of the Standstill

Applied Restructuring Case Study – Participants in their project groups will review a major new case study. Working in project teams, the position problem is reviewed with a list of questions and information requirements to understand the potential viability of the problem loan. Also, the actions that need to be taken to stabilise and improve the company’s performance over the longer term, and to understand the position of security that the bank can fall back on as a potential secondary source of repayment. A standstill Agreement is then drafted.

Session 7 – Assessing the potential viability of the company and devising the recovery plan

  • Assessing the viability of the problem loan and the recovery strategy and resulting forecast cash flows (Stages 2 and 3 of the restructuring framework)
  • The use and application of the Primary Assessment of the potential viability of the problem loan – the advantages and practical application of the ‘Walk Through’
  • A review of the content and scope of the walk-through and assessment of parties suitable for its undertaking and delivery
  • Examples of successful ‘walk-throughs’ used as part of restructuring
  • Introduction to the Secondary Viability assessment and the role and importance of the Independent Business Review
  • The use and application of the IBR
  • The importance of Independence in terms of the delivery of the IBR
  • Parties and examples of IBRs and the scope of the work undertaken
  • Why the IBR is an essential part of the Operating Restructuring
  • Creating the Scope of Works for the IBR by the banking team
  • Structuring the new restructured debt facility and undertaking sensitivity analysis to identify the most realistic repayment amount (Serviceable element of the debt) that the Bank can recover

Operating Restructuring workshop: Participants will devise a scope of work for both the Preliminary Viability Assessment (including the walkthrough) and the Secondary Viability Assessment (The IBR) applied to the study introduced in Session 6 above.

Session 8 – Creation of the restructured loan, conclusion of options for the Unserviceable element of the loan (Stage 4) and assessment of the Least Cost Option for the Restructuring process (Stage 5)

  • Application of sensitivity analysis and working with management to create the new restructuring loan
  • Incorporating elements of the client’s recovery strategy into the conditions of the new loan agreement
  • The use of covenanted performance milestones and operating ratios, as well as revised financial ratios, to control the recovery plan and strategy going forward
  • Applying stage five of the recovery strategy to compare the selected recovery strategy against alternative, potentially lower-cost options and reviewing the checklist of areas of assessment as part of this process
  • Negotiations with the client and pricing of the restructured loan

Final Case Study Workshop – Using the case study, 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. Participants review the sensitivity of the forecast financial projections in the Excel model and propose a schedule for the restructured loan. The team will also include terms of a Standstill Agreement, if required and will present their restructuring solutions. They will also provide any lower-cost solutions that might be an alternative to the going concern solution identified.

For the past 20 years, the trainer has provided training programmes to some of the world’s largest financial institutions, including HSBC, EBRD and the EIB. Working with several leading training providers, he has delivered sessions to participants from some of the world's largest industrial and financial institutions across the Middle East, the Far East, Europe, and Southern and Eastern Africa.

Our expert 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 training, this specialist has a 30-year career in Banking and Finance, originating in London and has specialised in credit risk analysis, debt structuring, problem loan workout and corporate debt restructuring for individuals & international corporate clients. He has worked with a number of the world’s leading financial institutions, providing lending facilities or private placements worth over $5 billion to the corporate sector. He is also a senior partner in a London-based investment management company that raises debt and equity financing for Technology start-ups for MedTech, AgTech and Fintech companies.

Before a career in banking, he acted as an Economic and Political Adviser to the Prime Minister of the Slovak Republic.

  • To understand the core principles of successfully restructuring a problem loan to maximise the bank's recovery and manage its exposure to a distressed client
  • Assessment of key lessons learned from high-profile international case studies of financial distress
  • Assessing why the restructuring process is critical to identifying the most effective solution for a problem loan
  • A review of key qualitative and leading Early Warning Signals of potential distress, and the importance of taking action ahead of time to avoid a problem loan client from defaulting
  • To review the immediate action and different steps bankers need to undertake once the distressed client has defaulted
  • The importance of avoiding ‘Extend and Pretend’ for the interests of the bank’s exposure recovery
  • Understanding the options available to a corporate banker for managing problem loans, and the political considerations that may influence the bank's preferred approach
  • Using the IFC and other frameworks to begin to identify debt restructuring strategies for the recovery of the problem loan, depending on different key criteria
  • Assess what can be done with management as part of the restructuring process to improve the chances of the client’s recovery process
  • Assessing the importance of identifying the root causes of a client's distress and working with management to address them
  • Understanding the importance of operating restructuring in achieving a long-term resolution to problem loans and its relationship with financial restructuring
  • Assessing what proportion of the problem loans can be serviced through the company’s recovery plan and the generation of future free cash flows
  • The importance of detailed cash flow forecasting and sensitivity analysis in assessing and taking confidence in the client’s recovery strategy
  • Reviewing available solutions in the UK and other European countries of operation for the unserviceable part of the problem loan
  • A review of popular methods of corporate recovery services and problem loan work out (Debt Sales, Debt to Equity Swaps, Debt to Asset Swaps, Loan Haircuts, PIK, etc)
  • An assessment of the key legal concepts surrounding debt recovery and debt restructuring, and how these compare across key jurisdictions
  • The importance of controlling the restructuring process as part of a successful workout and recovery process
  • A detailed application of a Five-staged structured recovery and restructuring process to major case studies
  • The importance of data gathering and assessment to understand the depth of the problem facing the distressed debt client
  • The importance and application of external independent support in assessing the company’s potential future viability, and the use and application of the Independent Business Review
  • Using forecast and sensitised cash flow projections to assess the credibility of the client's recovery strategy
  • Assessment of any least-cost alternatives for the restructuring strategy

Delegates are understood to be at an advanced stage of their professional banking careers and have been providing corporate loans to clients for several years. It is assumed that all participants have highly developed financial analysis and holistic credit risk analysis knowledge. A good working knowledge of Excel is also an advantage, as we will be using financial models to assess the restructuring options across numerous case study questions.

This advanced session is a “must know” for practitioners in:
  • Corporate Recovery
  • Problem Loan Workout

The content covered gives participants a significant technical advantage in:
  • Credit Risk Management
  • Relationship Management
  • Portfolio Management

Economic uncertainty, elevated borrowing costs and geopolitical instability continue to place pressure on businesses, leading to sustained levels of corporate distress. This has increased the need for bankers and restructuring professionals to assess problem loans, evaluate recovery options and implement effective debt restructuring strategies.

Our course is designed for bankers and financiers to develop a holistic, applied approach to early problem loan workouts through a range of techniques currently applied in international finance. It provides the attendee with a comprehensive overview of the challenges of problem loan workouts their banks may be facing, and insight into key methods that can be implemented to assist in the recovery of their financial exposure.

Through a range of practical case studies, financing scenarios and workshop exercises, attendees will develop a broad, applied understanding of debt restructuring methods, techniques and best practices. 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 different high-profile debt restructuring case studies and failures, including the test case collapse of Carillion in the UK and the failed CVA of House of Fraser in the UK retail industry. A number of the case studies used during the course are those that have been undertaken directly by the trainer.

Redcliffe’s advanced training is highly interactive. Attendees work in project teams to devise solutions and provide recommendations for cross-examination of proposals in a credit committee environment.

On day two of training, participants use forecast cash flow analysis as part of the strategic business review for the restructuring candidate. A working knowledge of Microsoft Excel will be beneficial for attendees.

Methodology

The online version of this training programme delivers the same practical, interactive learning experience as the classroom course, with live instruction, discussion, and delegate participation throughout. Sessions are separated into four 90-minute segments, delivered over two consecutive days. Delegates work through case study exercises and questions in project groups with the course trainer.

For both classroom and online delivery, the course uses a combination of presentations, supporting materials, assignments and case studies, with a strong emphasis on analysing practical examples of corporate loan candidates. All case studies are taken from real-life working examples and can include client companies of the bank, particularly non-performing loans. Sharing already developed knowledge and learning to work closely in solving practical issues is core to the learning methodology of this programme.

Training is designed with active delegate participation as a core theme throughout. Participants are required to present findings and solutions to colleagues via the screen-sharing option available through the online platform. Pre-course reading and preparation are required for delegates.

  • A good refresher on debt restructuring and a useful introduction to recent material/frameworks such as the IFC.
  • Very good presenter.
  • The course provided concise but useful information and principles that can be applied in restructuring. In my opinion, the course content is well worth the hours allocated to it. I will be applying the Altman Z-score modelling in addition to the financial analysis of my corporate clients.
  • Very professional delivery. Very engaging and relevant content.
  • A comprehensive course. The instructor has vast experience in the field and delivered the lecture in a smooth way.
  • The course was the right level for my team and me, with a lot of examples given.
  • A very good insight into the understanding of specific problematic situations, especially involving financial distress. The tutor was very keen to assist us in obtaining knowledge.
  • A very interesting course which applies to our daily work as a credit underwriter. It met my expectations cause it dealt with real-life cases like the ones we meet in our daily job. The tutor delivered the course in the most interesting way. Keeps you engaged since he mentions personal experiences, which were very relevant and interesting. 
Number of places:

£ 2150.00

08-09 October 2026 Virtual class 09:30 - 17:00 UK Time
19-20 April 2027 Virtual class 09:30 - 17:00 UK Time
04-05 October 2027 Virtual class 09:30 - 17:00 UK Time

Discounts available:

  • 2 places at 20% less
  • 3 places at 30% less
  • 4+ places at 40% less
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