It is assumed that the professional experience of the delegates attending this course is intermediate to senior and therefore basic credit and financial EWS analysis will be assumed knowledge although we will be revisiting key areas of ratio analysis as part of the theoretical credit risk review. The workshop will focus heavily on the successful and practical implementation of this theory with real life scenarios through case study analysis.
The aims of this online programme will include:
- Background to the financial and economic impact of the COVID 19 pandemic on the global economy, on corporates internationally and on the leveraged loan market.
- Reviewing key Early Warning Signals (EWS) that indicating distress in corporate clients.
- Full review of the financial EWS of a company in distress and the danger levels of key ratios arising from the financial statements
- The importance of preserving company liquidity during the current post COVID economic and financial crisis
- Review of the different stages of crisis that companies can encounter on the road to default and what measures can be taken at each stage.
- The danger of the liquidity crisis in the company’s default
- The need to assess how companies manage their working capital financing and EWS of bad working capital management.
- Practical steps needed to alleviate a liquidity crisis in a defaulted company and avoiding ‘throwing good money after bad’.
- Identifying leading EWS that can be a portent for distressed debt including external risk crystallisation, management behaviour, poor governance
- The importance of identifying defects and mistakes in the company ahead of the symptoms of decline.
- The limitations of relying on financial analysis to identify distressed debt candidates.
- Introduction to the basic principles of debt recovery and different methods of corporate recovery and problem loan workout
- Assessing when the loan needs to be restructured, the company turned around, or put into Corporate Recovery
- Understanding when a situation can be salvaged and when it can’t.
- Understanding which trigger events can lead to the corporate restructuring
- Accepting when the financial restructuring is not enough and understanding the need to avoid Extend and Pretend
- The importance of the Operational Restructuring in achieving a permanent turnaround in the company’s operating and financial fortunes.
- Using external advisers and the Independent Business Review for successful and complete restructuring
- Using international frameworks and guidelines from International Financial Institutions in guiding the restructuring method and strategy
- Implementing a practical 10 point plan for effective restructuring of distressed debt
- Reviewing a wide range of different restructuring case studies to understand what went right and what went wrong
- Review of principal legal solutions for debt recovery across a range of different jurisdictions
- Implementation of the standstill agreement in controlling the restructuring process where other bilateral lenders are involved.
- Understanding and identifying strategies for recovery for the problem loan candidate
- Using cash flow forecasts to understand the feasibility of the Corporate recovery strategy
- Implementing a company turnaround and steps required for a successfully recovery of the client business
- Reviewing different recovery methods that can be implemented during different circumstances
- The use and advantages if CVAs and Pre pack insolvencies
- When to apply debt to equity swaps and the implementation of warrants in restructuring
This online training programme will be delivered through a highly interactive online platform through which the delegates will be able to fully engage with the trainer and also solve case study problems with their colleagues. Delegates will work through case study exercises and questions in project groups and with the course trainer.
The learning techniques will be a mixture of formal presentations, written materials, assignments and case studies with a heavy emphasis on learning through analysing practical examples of corporate problem loan. All the case studies will be used from real-life working examples. Sharing already developed knowledge and learning to work closely in solving practical issues, is a core to the learning methodology of this programme.
The workshop is designed with active delegate participation as a core theme of the workshop. Delegates will be required to present their findings and solutions to their colleagues in class via the screen sharing option available through the online platform. Pre course reading and preparation will be required of the delegates.
This programme is designed for relationship managers and the banking team responsible for monitoring the client company salvage the problem loan and thus avoiding corporate recovery as well investment officers from equity funds. EWS and problem loan analysis will be undertaken from a full 360 degree holistic approach to credit risk including both quantitative and well as strategic, managerial and qualitative analysis.
The workshops will use a range of case study companies located across Europe and North America, to provide the core learning tools for this problem loan course. We will be drawing on a range of international best practice tools for problem loan workout and applying these to the context of the existing business environment in the light of the COVID 19 pandemic.