|COURSE : CERTIFIED DISTRESSED DEBT & RESTRUCTURING PROFESSIONAL|
|Course Overview||The objective behind distressed debt and restructuring is to increase recovery rates through maximizing asset values. In addition to maximizing value in a distressed situation, we will examine who are the “stake holders” and what are the priority of those claims in the “water fall” of value
|Training Duration||Total Training Hours : 30 Hours
Training Duration : 1 Week
Total Training Days : 5 Working Days
|Training Schedules||Weekdays (Sunday to Thursday)
Regular Sessions : 6 Hrs Per day (9am to 2pm or 3.00pm to 9.00 pm)
Food & refreshments Included
WeekEnds (Friday & Saturday)
Fast Track Sessions: 8 Hours per day (9am to 5pm)
Food & refreshments Included
|Certifications:||1) Certificate from Laurels Training Institute, Attested by Knowledge & Human Development Authority (KHDA) government of Dubai, UAE
2) Certificate from American Institute of Professional Studies (AIPS) from USA (After 15 Days of course Completion which will couriered to the attendees office address)
|Course Material||Hard & Soft Copies of Study Material|
|Language of Instruction||English|
2. Social Media (For Emergency requirements)
|Registration Requirements||1. Passport Copy
2. Curriculum Vitae
3. Passport size photographs
4. Course Fee
|Mode of Payment:||Cash / Cheque / Credit Card / Bank Transfer.|
(Who should attend this training)
Bank credit officers
Bond credit analysts
Fixed income/credit traders
Fixed income/credit sales people
Compliance officersFinancial decision makers in corporations
The participants will then explore out-of-court and in-court restructuring, as well as the associated benefits and costs. This course will benefit any professional interested in understanding the distressed debt and restructuring process, for career switchers without prior experience, communications, marketing and client relations personnel for any distress-oriented asset manager/hedge fund as well as anyone that desires a deeper understanding of credit beyond the traditional “risk, mitigate and return” approach.
|Course Contents / Outline||
Definitions of NPLs and distressed debt
Typical causes of distress – sovereign, industrial, cyclical and firm specific
Introduction to financial analysis for distressed firms
Common early warning signs that a firm is becoming distressed
Market/economic based signs
Income statement/operational signs
Balance sheet signs
Acting on early warning signs if there is no covenant breach
Should the lender give more time and/or lend more money?
Should the lender foreclose?
Analysing the income statement of distressed firms
Understanding the sources and sustainability of revenues and earnings
Can the firm generate in future sufficient earnings to service debt?
What constitutes interest charges, incl charges for derivatives and quasi-debt?
Adjusting for exceptionals, non-core earnings, discontinued items
Calculating adjusted margins, EBITDAR and EBITDA interest cover
Adjustments for operating leases, joint ventures, minority interests
Analysing the scope for cost cuts to improve earnings
Analysing the cashflow statement of distressed firms
Identifying warning signs of cashflow shortfalls
Can the firm generate sufficient cash to service interest and meet other obligations?
Forecasting cash available for debt repayment and cash available for debt service
Payback and debt service analysis
Identifying new sources of cash for debt service
Analysing the scope for improving operating cashflow and for reducing NWC and other investment spending
Cashflow vs asset based lending
Analysing high growth firms that over-trade and run out of cash
Analysing the balance sheet of distressed firms
The nature of the asset base – is the firm worth more as a going concern or liquidated?
Balance sheet values versus market and liquidation values
Structural subordination and double leverage
Consolidation policies – are debt/costs/losses hidden in off balance sheet vehicles?
What constitutes debt – including derivatives, quasi-debt and off balance sheet liabilities
Adjusting for factored receivables, operating leases, contingent liabilities
What other liabilities might crystalise in a default?
ROIC analysis and ROIC vs WACC
Analysing the scope for new equity issuance
Ratio analysis – leverage, liquidity, asset coverage, working capital, ROIC, ROE, asset turnover
Modelling for distressed credits in Excel
Introduction to comprehensive forecasting model
Forecasting assumptions for the IS, CF and BS
What are the key earnings and cashflow drivers for the distressed entity?
Tools and key indicators to help with forecasting for distressed firms
Covenants - setting revised, cashflow-based covenants and forecasting headroom
Structuring cashflow sweeps
Scenario analysis – what is required for the firm to turn-around? What could trigger further performance short-falls?
Use of liquidation models to assess each stakeholder’s economic interest
Debt restructuring overview
Guidelines from Central Banks
Aims of the restructuring for lenders
Does the company need additional funding?
Rescue vs liquidation, now or later
Other liabilities that might crystalise in an event of default
What happens to collateral value during a default situation?
Dealing with other banks - multi-creditor workouts
Preferential claims and ranking of claims
Option 1: Operational restructuring for distressed entities
Should this take place before capital structure changes or at the same time?
Management – does the firm need new or additional directors?
Strategic analysis and new strategy
How to maximise cashflow generation
Options 2-4: Restructuring of loans and of the capital base
Option 2 – equity injection, shareholder loan, equity cure
Option 3 – amendment of financing terms - PIK, PIK toggle, cash sweeps, extended maturities,
Rewards for amended financing terms - additional security, warrants, convertible loans
Return analysis – equity kickers, warrants, compounded PIK returns
Option 4 – debt restructuring
Debt for debt swap, discounted debt buyback, full or partial debt for equity swap, lenders sell
Debt at a discount, engage suppliers in restructuring, cashflow ring-fencing
Why restructurings do not always work
Monitoring distressed and non-performing debt
Agreeing forecasts with the borrower
Reporting requirements for the borrower
Agreeing new Heads of Terms with the borrower
Setting covenants and covenant testing
Board seats and management influence"