Course overview
Creditors and borrowers are facing an unprecedented and unpredictable market with many of the debt arrangements put in place during the last three to five years coming under severe pressure.
With the trend for increased leverage of corporations over the past few years driven by high levels of liquidity now resulting in many borrowers struggling to maintain their current debt levels, lenders and investors are having to look at their investment portfolios and loan books to assess the potential risks that holding such investments present.
There are a wide number of options available to manage distressed debt situations. These options range along a sliding scale of severity, from waivers for “technical” defaults to full scale liquidation and enforcement actions in situations where there is no hope of alternative action rescuing a financing arrangement.
It is essential that both creditors and borrowers understand the nature of the risks presented by the current market conditions. Proactive management of the issues arising from defaulting debt arrangements will assist creditors and borrowers in managing distressed situations in a way that should minimise destruction of value.Debt restructuring law
Summary of course content
- Examine current issues in the market
- Learn the key documentary privisions in loan arrangements and bonds
- Explore inter-creditor deeds, the options for creditors and the creditor process
- Appreciate the tactical use of litigation
- Understand UK insolvency issues
- Identify enforcement of security options
- Understand the French “safeguard” process
- Evaluate issues in emerging markets
Methodology
Primarily formal lectures, supplemented each day by case studies and group discussions. Guest speakers may be called upon dependent upon group composition and availability of relevant persons.
Who should attend this training course?
- In-house lawyers in financial institutions, hedge funds, private equity houses, asset managers and investment vehicles
- Corporate counsel
- Bankers concerned with negotiation of restructuring debt
- Lawyers in private practices who advise clients on restructuring debt
Supporting publication
Day 1
Current issues in the international debt and loan markets
- Understanding the role of restructuring
- Market conditions driving restructuring and restructuring options
- Options and issues to watch out for
The restructuring process – stakeholders and timing
- The stakeholder landscape
- Identifying danger situations
- Protecting interests against competing stakeholders
Key documentary provisions (loan arrangements)
- Triggers for default:
- Types of default
- Grace periods
- Consequences of default
- Voting arrangements and thresholds
- Waivers and amendments
Key documentary provisions (bonds)
- Triggers for default:
- Types of default
- Grace periods
- Consequences of default
- Voting arrangements and thresholds
- Waivers and amendments
- Noteholder meetings
- Tender/exchange offers
Inter-creditor deeds
- Ranking
- The role of value in restructuring
- Creditor rights and restrictions
Day 2
Debt to equity swaps
- Issues
- Process
- Documentation
Enforcement options
- Role of the agent and the trustee
- Enforcement of security
Options for creditors
- Waivers
- Rescheduling
- Restructuring
- Enforcement
- Liquidation
- Standstill arrangements and documentation
The creditor process
- Creditor committees
- Appointment
- Operation
- Managing the public/private information divide
High yield as a key restructuring tool
- The nature of high yield transactions
- High yield structures for refinancing senior bank debt
- Current trends and issues in the high yield market
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Claire Pointing
Claire Pointing is a highly experienced banking and finance lawyer with over 15 years experience in advising on a wide range of debt finance transactions.
Claire trained and practiced in the Banking and Finance department of Norton Rose where she advised lenders and borrowers on a wide range of complex asset finance and loan arrangements including:
• The merger of the P&O and Stena Line short sea fleet;
• The financing of the voyager of the seas
• Numerous bilateral, club and syndicated loan arrangements.
After a break from the law as a strategy consultant and academic, Claire returned to practice as a partner level Consultant advising on all English law aspects of banking and finance transaction including:
• cross border loan finance arrangements,
• hostile and consensual restructuring of debt finance transactions and
• loan finance arrangements embedded in complex capital markets transactions.
She led the team that structured and delivered the highly innovative Hertz International Securitisation that utilised loan arrangements within a portfolio of assets to provide the cash flows underlying the securitisation. She has also recently advised on both subordinated debt structures and on pan-European secured lending arrangements for the mandated lead arranger. She is noted in the Legal 500 for blending “‘strong interpersonal skills and commerciality”.
In addition to her experience in practice, Claire devotes a significant amount of her time to delivering internal and client focused training on the issues relating to debt finance in the current market. Her experience in strategy consulting and the commercial sector enables her to make complex legal and commercial issues accessible.
Courses run by this instructor
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This course has now expired please email us to find out when the course will next be running.