Loan Workouts and Debt for Equity Swaps: A Framework for Successful Corporate Rescues

ISBN-13: 9780471893394 / Angielski / Twarda / 2001 / 300 str.

Subhendru Chatterji; Paul Hedges

Opis

The key to a successful loan workout is to identify the problems accurately and address them early. It is critical that the company's underlying business and financial problems are resolved and not merely the symptoms.

Loan Workouts and Debt for Equity Swaps examines how a successful loan workout can be managed. It detail the processes and participants involved, whilst providing frameworks and practical step- by-step approaches that allow for a coherent and cohesive policy to give the best possible chance of success. The book assists in the ultimate aim of providing a firm base for the future health of the company involved and maximizing the lenders' returns. This work is not merely restricted to companies and banks involved in the process, but other important participants in loan workouts.
Areas featured in the book are:
* What loan workouts are and why they are needed
* Non-performing loans related strategies, organization and systems
* Participants involved in loan workouts and their motivations
* Symptoms of corporate distress and corporate turnaround strategies
* Major steps involved in a typical loan workout transaction
* Special issues relating to debt for equity swap transactions
* A case study illustrating many of the issues covered in the book

Recenzje

"The book is needed quite simply because there is a dearth of information on corporate restructuring. At present the number of receiverships is going down and the emphasis is on workouts. In this respect the book is very timely.", , , #"I", , , #

Spis treści

Foreword by David Wilson Havelock.

INTRODUCTION AND BACKGROUND.

Introduction.

Loan Workouts: What They are and Why They are Needed.

STRATEGY, PARTIES AND THE PROCESS.

A Framework for Managing Non–Performing Loans.

Organisation and Systems Relating to Non–Performing Loans.

Managing Loan Workout Transactions.

The Company.

The Banks.

Other Key Participants in Loan Workouts.

External Advisors.

A Framework for Executing Loan Workouts.

Turning Around a Business.

The Information Gathering and Review Process.

Exploring Loan Workout Options.

Evaluating Restructuring Options and Developing Proposals.

Negotiating and Completing Transactions.

THE MORATORIUM AND FINANCIAL RESTRUCTURING.

Establishing a Moratorium.

Financial Creditors Affected by a Moratorium

The Operation of Facilities in a Moratorium.

The Concept of Loss–Sharing.

Multi–Currency Considerations.

Financial Restructuring.

Inter–Creditor Provisions in a Financial Restructuring.

Other Terms and Conditions.

Introduction to Debt for Equity Swaps.

Transaction Approach.

Equity Instruments.

Other Transaction Parameters.

Other Technical Issues.

CASE STUDY.

Project Gloucester.

Index.

O autorze

SUBHRENDU CHATTERJI has worked with banks and corporate clients on loan workouts and corporate restructurings around the world. In addition to advising on loan workouts–related strategy, systems and structures within banks, he specialises in structuring debt for equity swap transactions. He is currently the Chief Executive of ConsultingBase, an exchange for consultants working in the emerging markets and developing countries.

PAUL HEDGES is a Senior Manager with the Royal Bank of Scotland. Since 1989, he has been involved in the credit risk and debt workout areas, both in the UK and Eastern Europe. Paul is particularly experienced in the restructuring of the debt of large, multinational companies, and in multi–bank transactions. He has participated in complex financial restructurings, both as a banker and as a consultant to banks and comapnies.

Blurb

The past 10 years has provided one of the longest sustained periods of economic growth for many western economies. There are signs that this may all be coming to an end. Japan, the UK and the US are but a small proportion of the developed countries that have experienced major economic downturns and associated bad debt crises in the recent past. Throughout the emerging markets and developing countries, companies are being restructured and, along with them, their finances. There is also an increased recognition around the world that rescuing, rather than liquidating, companies with a viable future is to the benefit of all the stakeholders. The demand for specialist loan workout skills has never been greater.

Corporate distress is characterised by chaos, confusion and crisis. Unless the situation is stabilised and effective steps taken to restore confidence, it culminates in the company′s failure. The key to a successful loan workout is to identify the problems accurately and address them early. It is critical that the company′s underlying business and financial problems are resolved and not merely the symptoms.

This book provides a practical guide to the entire range of issues relating to loan workouts. It is critical that an institution has appropriate systems, processes and resources to deliver successful rescues, and the reader is taken through the most important issues in this area. The book further provides a framework for a methodical, step–by–step approach to loan workouts. Technical issues involved in restructuring debt and equity, particularly in multi–lender loan workouts, are also explored in detail.