Description
Many investors and lending institutions across the world are burdened with a high level of distressed debt and non-performing credit exposures. In these situations, lenders need to maximise their recovery rates and optimise their long term returns, subject to prevailing insolvency laws, the lender’s own capital situation and sometimes to the wider interests of other stakeholders in the firm.
Specialist knowledge is required to analyse the cause of the borrower’s problems and to design and implement an optimal restructuring solution. This can involve both operational and capital restructurings, including debt for debt swaps, full or partial debt for equity swaps, discounted debt buybacks, equity cures, shareholder loans etc. In some cases, the best outcome may be full or partial asset liquidation. Cashflow forecasting is key to creating an optimal debt restructuring solution and the course covers distressed debt restructuring solutions in Excel. Case studies focus on a range of sectors including property, retail, infrastructure, house building, media and industrial.
What you will learn
- Early warning signs of distress - macro, sector-specific and firm-specific
- How to decide if the firm should be rescued
- The main operational and financial restructuring options
- How to assess which rescue option would be the most appropriate
- Understanding best practice for multi-creditor workouts
- How to model different rescue and liquidation scenarios for distressed firms in Excel
- How to value a distressed firm
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