Distressed Debt and Loan Trading - Singapore
'Distressed Debt and Loan Trading' will equip professionals with limited experience of distressed debt or who are new to this sector with necessary knowledge to be able to appreciate the terminologies, compliance, legal and practical steps to help maximise returns in workout situations.
Course dates
Course overview
'Distressed Debt and Loan Trading' will equip professionals with limited experience of distressed debt or who are new to this sector with necessary knowledge to be able to appreciate the terminologies, compliance, legal and practical steps to help maximise returns in workout situations.
Summary of course content
- Obtain an understanding of distressed market dynamics, principles and players
- Learn key technical and legal issues
- Analyse debt structures, underlying company problems
- Receive a toolkit of valuation methodologies and restructuring solutions
- Implement strategies to maximise benefits during a workout and through a distressed trade
- Learn effective loan trading strategies (from initial planning through to implementation)
Methodology
This three day intensive training course will consist of interactive presentations and workshops including distressed valuation modelling assumptions and distressed trading exercises.
Who should attend this training course?
- Credit analysts
- Distressed investors
- Institutional investors
- Private equity analysts
- Portfolio managers
- Loan traders
- Financial advisors
- In-house lawyers and lawyers working for restructuring team
- Agency and middle office executives
- Financial advisors
- Accountants working for restructuring team
Supporting publications:
DAY ONE: Market, players and key legal issues
Background to the distressed debt markets
The session will look at how the markets developed and what lessons are to be learnt from previous cycles.
The players in the market and their various strategies, perspectives and goals
The session will consider the drivers, the behind the scenes players, the implications for public-side investors, external regulatory influences (Basle II), and debt buy backs.
- Commercial banks
- Institutional investors
- Sponsors
- Vulture funds
Workshop: sponsor debt buy back Compliance
- Regulations and best practice
- What can be disclosed and to whom
- Private and public information - the implications
- Chinese Walls
- Separation of roles
Case study
Legal audit
- Syndication control - voting levels and implications
- Financial covenants and undertakings - breaches
- Material adverse effect clauses
- Consequences of events of default and cross default
- Transfer rights and restrictions
- Sub-participations and elevations
- Guarantees and security
- Perfection issues under differing jurisdictions
- Enforcement issues
Intercreditor agreements
Intercreditor workshop
DAY TWO: Understanding the problems, guiding principles, standstills and valuations
Debt structures
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A review of leveraged and complex debt structures
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Cross-border issues in group companies
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Due diligence and information rights and the hamburger strategy
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Multi tranched facilities and borrowers with multiple debt facilities
Agent and guiding principles for the players
Political influences and pressures? Potential implications for major players
Standstill arrangements and appointment of professional advisors
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Key features and purpose of appointments
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Company letter
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Intercreditor letter
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Interbank letter
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Role of co-ordinating committees
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Actions and protections for co-ordinating committees and professional advisors
Understanding lenders' and other key stakeholders¡¦ reactions to a default
- Facing up to the situation, syndication dynamics
- Multiple co-ordinating committees
- Perceived legal rights versus actions by other creditors in nonconsensual restructurings
- Other players - bond holders, pension trustees, sponsors, trade creditors, unions etc
- Potential for management unilateral action and forum shopping
Understanding the key problems
- Understanding the key issues and strategic positioning of a borrower. Common themes:
- Unstable funding sources
- Volatile earnings
- Over concentration
- Asset and liability mismatches
- Excessive growth
- Liquidity analysis
- Analysis of off balance sheet items
Workshop: analysing a company in distress
Valuation methodology of businesses / assets
- Location of pertinent information
- Market related data
- Valuation techniques (which ones?)
- How assumptions are formulated and for what purpose
- How data on values is used
Valuation workshop
DAY THREE: Restructuring solutions and loan trading
- Restructuring solutions
- Implementation issues for:
- Consensual restructurings
- Non-consensual restructurings
- Administrator mindset - practical considerations of how administrator may have changed business, impact on funding requirements and legal issues
Debt for equity swaps
- When are these viable?
- What are the practical implications?
- Negotiating power of shareholders
- Directors and lender liability issues
Debt for equity workshop
Trading of distressed loans - transfer issues
- What to look for in a loan agreement
- Eligibility of transferee
- Novation versus assignments
- Distressed debt and insolvent claims
- Transfer of guarantees and assignments
Understanding the mechanisms of a distressed trade
- Determination of notional amount
- Treatment of interest and fees
- Ancillary rights and claims
Comparative study between European and US distressed loan trading arrangements
- Understanding the differences
- Appreciating the implications
Creating an operative transfer agreement
- Actions required to perfect a loan transfer
- Understanding additional complexities compared to par trading
Workshop on a distressed trade including implications for PIK elements in a trade
Hilton Hotel Singapore, Singapore, Singapore
This programme takes place on a non-residential basis at Hilton Hotel Singapore. Non-residential course fees include training facilities, documentation, lunches and refreshements for the duration of the programme. Delegates are responsible for arranging their own accomodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
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Michael Contstant
Michael Constant is a former vice chairman of the loan market association and was previously head of syndicate at Natixis and managing director of loan syndication at JPMorgan Chase. He has worked in banking for 35 years and has had two main roles during his career – syndicated loans and project finance. He has recruited, developed and led teams in Asia, the Middle East and Europe as well as working in North America and Africa. He has focused on all types of complex, structured financings and has been involved in several restructurings including co-chairing the FECSA steering committee.
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
Course dates