Debt Restructuring Course

 Location: London (Central)

The years prior to the credit crunch witnessed rising leverage, the evolution of complex-laminated structures and the erosion of lender protection in loan documentation. At the same time a raft of new payers entered the primary markets creating diffuse syndicates with multiple players. This complexity was enhanced by the parallel development of the secondary market which fuelled the diversity within the lender base and amplified the differing agendas by the various players.

The recession which followed the credit crunch brought these issues into sharp relief as many companies experienced default. Investors across the capital spectrum were faced with a range of issues, some novel, on an unprecedented scale; D4E swaps, debt buybacks, the advent of (aggressive) loan-to-own investors, valuation issues in distress, forum shopping and the implementation of schemes of arrangement. Some of these issues have been addressed although often the outcome has raised as many questions as answers (e.g. IMO Carwash).

Unleveraged corporates have also experienced widespread problems although the issues here are usually more opaque and it is usually more difficult to achieve a structured solution given the fragmentation of ownership, greater red tape and lack conflict between owners and managers.

This program explores the practical issues, options and tactics which will face parties in leveraged and unleveraged deals and, drawing on the trainer’s experience, offers a practical template on how to respond to the issues they are likely to face.

The programme is aimed at lenders, sponsors, lawyers, accountants and other advisers involved in this sector, management and other professions (investment advisers) operating in the European environment who require a greater insight into the key issues which arise in general debt restructurings.

Course categories:Debt / Fixed Income Courses, Private Equity / Venture Capital, Private Equity / Venture Capital Inhouse

COVERED TOPICS

Background

• Evolution of LBO debt
• Higher risk – the case for and against
• Timing – credit or economic crunch
• Players in the Capital structure – different roles & angles

Triggers

• Defaults vs Events of Default
• Insolvency & Wrongful trading (Cheyne case)

Directors’ Duties & Insolvency

• Types of Directors
• Directors’ duties (2006 Act) – impact on risk
• Tests for Insolvency
• Mitigating risk for Directors, Lender’s Advisors

Issues with Syndicated debt

• Role of the Agent Bank (especially Security Trustee)
• Syndicate composition – who is in /out (sub-participations)
• Transfer rights and restrictions
• Waivers & Restrictions (Majorities & Super majorities)
• Events of Default & Sponsor flexibility

Restructuring Route Map

• Valuation (where is the fulcrum capital)
• Review of the Loan docs (Senior, Mezz and Inter-creditor)
• Inter-creditor – Theory vs Reality
• IMO Carwash Case – issues and impact

Restructuring Options and Issues

• Covenant waivers / resets
• Debt buyback – methods & practical issues
• Hamburger strategy (buy either side of your debt to protect interests and give information)
• M&A, Demergers
• New money (internal & external)
• Pre-packaged sales as a tool for reconstruction in LBOs

Methods of Implementation Restructuring

• Formal methods (CVA, Scheme of Arrangement, Receivership)
• Administration and Prepacks
• Consensual methods (exercising pledge & taking security)
• Sale and other methods of transfer to NewCo
• Other issues

Hot Legal / Regulatory issues

• Jurisdiction & Impact of COMI
• Pensions Regulator & Moral Hazard

REGISTRATION & PRICING INFORMATION

Contact us if you are looking to book multiple participants as we offer discounts as follows:

• 1-2 participants - full price
• 3-4 participants - 15% discount
• 5-6 participants - 20% discount
• 7-8 participants - 25% discount
• Over 9 participants - 30% discount

For more information or to be contacted by the event provider please fill this form:

Registration price

650.00

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Price: 650.00 GBP
Location: London (Central)
Event date: 04.10.2012 - 04.10.2012
Event duration: 7h30
Event time: 09.30 h - 17.00 h

ADDITIONAL DATES

CONTACT US

Email: info@financialveritas.com

Phone: +44 208 133 5917