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)
Tests Yes
Learning Aids Yes
Course Material Hard & Soft Copies of Study Material
Language of Instruction English
Instructor Helpline Yes
1. Email
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.
Eligibility Criteria
(Who should attend this training)

Bank credit officers

Investment bankers

Management consultants

Bond credit analysts

Fixed income/credit traders

Fixed income/credit sales people

Fund managers


Compliance officers

Financial decision makers in corporations
Course Benefits

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

Cashflow 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

Liquidity analysis

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"

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