Loan workouts and debt for equity swaps: a framework for successful corporate rescues
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Chichester [UK]
Wiley
2001
|
| Schriftenreihe: | Wiley finance
|
| Schlagworte: | |
| Online-Zugang: | Contributor biographical information Publisher description Table of Contents Inhaltsverzeichnis |
| Beschreibung: | Series statement taken from jacket. Includes bibliographical references and index |
| Beschreibung: | XX, 314 S. graph. Darst. 25 cm |
| ISBN: | 0471893390 |
Internformat
MARC
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| 100 | 1 | |a Chatterji, Subhrendu |e Verfasser |4 aut | |
| 245 | 1 | 0 | |a Loan workouts and debt for equity swaps |b a framework for successful corporate rescues |c by Subhrendu Chatterji and Paul Hedges |
| 264 | 1 | |a Chichester [UK] |b Wiley |c 2001 | |
| 300 | |a XX, 314 S. |b graph. Darst. |c 25 cm | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 0 | |a Wiley finance | |
| 500 | |a Series statement taken from jacket. | ||
| 500 | |a Includes bibliographical references and index | ||
| 650 | 4 | |a aCorporate turnarounds | |
| 650 | 4 | |a aCorporations |a xFinance | |
| 650 | 4 | |a aCorporate debt | |
| 650 | 4 | |a aCorporate reorganizations | |
| 700 | 1 | |a Hedges, Paul |e Sonstige |4 oth | |
| 856 | 4 | |u http://www.loc.gov/catdir/bios/wiley042/00068517.html |3 Contributor biographical information | |
| 856 | 4 | |u http://www.loc.gov/catdir/description/wiley034/00068517.html |3 Publisher description | |
| 856 | 4 | |u http://www.loc.gov/catdir/toc/onix06/00068517.html |3 Table of Contents | |
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Datensatz im Suchindex
| _version_ | 1804143895842390016 |
|---|---|
| adam_text | CONTENTS
Foreword by David Wilson Havelock xiii
PART I: INTRODUCTION AND BACKGROUND 1
1 Introduction 3
The environment for loan workouts 4
Objectives of this book 6
Intended audience 7
Structure of the book 7
Terminology used 10
Acknowledgements 10
2 Loan workouts: what they are and why they are needed 13
Introduction 13
Background to statutory insolvency frameworks and loan workouts 13
The need for corporate recovery and rescue frameworks 14
Statutory and voluntary frameworks for corporate distress 15
Statutory insolvency frameworks 16
Voluntary rescue frameworks 20
The nature of loan workouts 21
The benefits and disadvantages of loan workouts 21
Factors affecting the effectiveness of loan workouts 2 3
PART II: STRATEGY, PARTIES AND THE PROCESS 27
SECTION A: LOAN WORKOUT STRATEGIES AND 29
STRUCTURES
3 A framework for managing non-performing loans 3 1
Introduction 31
Elements of a non-performing loan strategy 32
The role of credit risk strategy 3 3
Prevention and control 3 i
Timely identification 34
Protective steps and remedial actions 35
viii CONTENTS
The role of specialist teams 35
Communication channels and feedback loops 36
Impact of the bank s wider strategy 37
4 Organisation and systems relating to non-performing loans 39
Introduction 39
Positioning the loan workout unit 39
Responsibility and authority 42
Transfer of responsibility for cases 43
Loan workout unit structure and resources 44
Early warning systems 46
Problem loan classification 48
Asset management companies 49
5 Managing loan workout transactions 51
Introduction 51
Business philosophy and integrity 51
Transaction management 55
Controlling transaction-related costs 57
SECTION B: THE PARTICIPANTS 61
6 The company 63
Introduction 63
Company features conducive to loan workouts 63
Key stakeholders involved in a loan workout 65
Directors and management 65
Shareholders 68
Employees and trade unions 70
7 The banks 71
Introduction 71
The bank group 71
The co-ordinator 72
The steering committee 76
Facility agents and security trustees 78
Position of individual hanks 79
8 Other key participants in loan workouts 81
Introduction 81
Factors limiting participation in loan workouts 81
Non-bank financial creditors 82
Debt traders and investors in distressed debt 84
Suppliers and other creditors 86
Preferential creditors 87
Customers 87
Governmental and other agencies 88
Contents ix
9 External advisors 89
Introduction 89
Reasons for engaging external advisors 89
Independent advisors 91
Reporting accountants 92
The company s external auditors 95
Legal advisors 96
Investment banking advisors 97
Other advisors and experts 98
SECTION C: THE LOAN WORKOUT PROCESS 99
10 A framework for executing loan workouts 101
Introduction 101
Loan workouts in context 101
Anatomy of a financial restructuring transaction 102
Implementing the framework 107
The moratorium, restructuring and refinancing 108
11 Turning around a business 109
Introduction 109
Internal causes of corporate decline 109
Operational control failures and fraud 112
External causes of corporate decline 112
Symptoms of corporate decline 112
Achieving short-term operational stability 114
Components of enterprise restructuring 115
Sequencing restructuring activities 117
Interaction between business restructuring and loan workouts 118
12 The information gathering and review process 119
Introduction 119
Initial internal appraisal 119
Obtaining information externally 121
Reports of reporting accountants 122
Other advisors reports 1 26
13 Exploring loan workout options 127
Introduction 127
Review of debt workout options from the lenders perspective 127
Short-term exit strategies 128
Medium-term controlled exit strategies 1 3C
Long-term financial restructuring strategies 1 52
14 Evaluating restructuring options and developing proposals 135
Introduction 1 55
Types of risk in a loan workout 1 36
X CONTENTS Assessing the risk of a financial restructuring proposal 139
Returns from loan workouts 140
Liquidation value 142
Evaluation 142
Developing financial restructuring proposals 144
15 Negotiating and completing transactions 147
Introduction 147
Ingredients of an effective negotiating process 147
Negotiating strategy 149
Bank lenders 150
Holders of bonds 151
Shareholders 152
Completing the transaction 152
Documentation and agreements 153
Loan workout information memorandum 154
PART III: THE MORATORIUM AND FINANCIAL
RESTRUCTURING 157
SECTION A: THE MORATORIUM 159
16 Establishing a moratorium 161
Introduction 161
Causes of a moratorium 161
Principal features of a moratorium 162
Advantages and disadvantages of moratoriums 164
Underlying principles 165
Key provisions of moratorium agreements 166
Documentation structure 169
17 Financial creditors affected by a moratorium 171
Introduction 171
Determining who to include in a moratorium 171
The position of different financial creditors in a moratorium 173
18 The operation of facilities in a moratorium 179
Introduction 179
Determining commitment levels 179
Issues relating to different types of facility 180
On-going operation of facilities 182
19 The concept of loss-sharing 191
Introduction g
The importance of loss-sharing 191
Definition and framework 192
Why is a loss-sharing arrangement necessary. 193
Loss-sharing provisions and documentation 194
Loss-sharing and different types of facilities 196
Contents xi
Sharing the reward as well as the risk 196
Loss-sharing provisions in a restructuring agreement 197
20 Multi-currency considerations 199
Introduction 199
Causes of currency-related complications 199
Limits and utilisation 200
Distributions and loss-sharing 202
Hedging 207
SECTION B: FINANCIAL RESTRUCTURING 209
21 Financial restructuring 211
Introduction 211
Objectives of a financial restructuring 211
Developing financial restructuring proposals 212
Key information needs 213
Entity priority and ringfence structures 215
New financing 216
Security-related issues 219
22 Inter-creditor provisions in a financial restructuring 223
Introduction 223
Priority rankings 223
Pre-enforcement distributions 226
Post-enforcement loss-sharing and indemnities 231
Decision-making and voting 231
23 Other terms and conditions 233
Introduction 233
Undertakings 233
Financial covenants 235
Term and commitment 239
Restrictions on assignment and transfer 240
Remuneration 240
SECTION C: DEBT FOR EQUITY SWAPS 243
24 Introduction to debt for equity swaps 245
Introduction 245
Definition 246
Advantages ot debt for equity swaps 247
Disadvantages ot debt tor equity swaps 24ft
When is it appropriate. 249
Principal transaction parameters 250
25 Transaction approach 253
Introduction 25 3
The need for specialist advisors 253
xii CONTENTS
Transaction-related considerations 254
Impact on information gathering and assessment 255
Assessing the appropriateness of debt for equity swaps 256
Evaluating debt for equity swap proposals 256
Negotiations 258
Exit-related considerations 261
26 Equity instruments 263
Introduction 263
Ordinary shares 264
Preference shares 266
Convertible debt instruments 270
Warrants 270
Other equity instruments 271
Structuring principles 272
Inter-creditor issues 276
Valuing equity instruments 276
27 Other transaction parameters 279
Introduction 279
Proportion of debt converted into equity 279
Proportion of equity for lenders 285
28 Other technical issues 289
Introduction 289
Accounting-related matters 289
Taxation 291
Selected legal and regulatory issues 291
Transaction mechanics 292
Swap of debts in subsidiaries 293
PART IV: CASE STUDY 295
29 Project Gloucester 297
Introduction 297
Background 297
Moratorium 298
Causes and impact of the financial crisis 300
Business restructuring 301
Financial restructuring 302
Debt restructuring 303
Debt for equity swap 305
Evaluation 307
Index 309
|
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| id | DE-604.BV037271790 |
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| indexdate | 2024-07-09T22:54:56Z |
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| isbn | 0471893390 |
| language | English |
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| physical | XX, 314 S. graph. Darst. 25 cm |
| publishDate | 2001 |
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| publisher | Wiley |
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| series2 | Wiley finance |
| spelling | Chatterji, Subhrendu Verfasser aut Loan workouts and debt for equity swaps a framework for successful corporate rescues by Subhrendu Chatterji and Paul Hedges Chichester [UK] Wiley 2001 XX, 314 S. graph. Darst. 25 cm txt rdacontent n rdamedia nc rdacarrier Wiley finance Series statement taken from jacket. Includes bibliographical references and index aCorporate turnarounds aCorporations xFinance aCorporate debt aCorporate reorganizations Hedges, Paul Sonstige oth http://www.loc.gov/catdir/bios/wiley042/00068517.html Contributor biographical information http://www.loc.gov/catdir/description/wiley034/00068517.html Publisher description http://www.loc.gov/catdir/toc/onix06/00068517.html Table of Contents HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=021184746&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Chatterji, Subhrendu Loan workouts and debt for equity swaps a framework for successful corporate rescues aCorporate turnarounds aCorporations xFinance aCorporate debt aCorporate reorganizations |
| title | Loan workouts and debt for equity swaps a framework for successful corporate rescues |
| title_auth | Loan workouts and debt for equity swaps a framework for successful corporate rescues |
| title_exact_search | Loan workouts and debt for equity swaps a framework for successful corporate rescues |
| title_full | Loan workouts and debt for equity swaps a framework for successful corporate rescues by Subhrendu Chatterji and Paul Hedges |
| title_fullStr | Loan workouts and debt for equity swaps a framework for successful corporate rescues by Subhrendu Chatterji and Paul Hedges |
| title_full_unstemmed | Loan workouts and debt for equity swaps a framework for successful corporate rescues by Subhrendu Chatterji and Paul Hedges |
| title_short | Loan workouts and debt for equity swaps |
| title_sort | loan workouts and debt for equity swaps a framework for successful corporate rescues |
| title_sub | a framework for successful corporate rescues |
| topic | aCorporate turnarounds aCorporations xFinance aCorporate debt aCorporate reorganizations |
| topic_facet | aCorporate turnarounds aCorporations xFinance aCorporate debt aCorporate reorganizations |
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