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Loan Workouts and Debt for Equity Swaps: A Framework for Successful Corporate Rescues

Loan Workouts and Debt for Equity Swaps: A Framework for Successful Corporate Rescues

Subhrendu Chatterji , Paul Hedges

ISBN: 978-0-471-89339-4

Jul 2001

336 pages

In Stock

$206.00

Description

The key to a successful loan workout is to identify the problems accurately and address them early. It is critical that the company's underlying business and financial problems are resolved and not merely the symptoms.

Loan Workouts and Debt for Equity Swaps examines how a successful loan workout can be managed. It detail the processes and participants involved, whilst providing frameworks and practical step- by-step approaches that allow for a coherent and cohesive policy to give the best possible chance of success. The book assists in the ultimate aim of providing a firm base for the future health of the company involved and maximizing the lenders' returns. This work is not merely restricted to companies and banks involved in the process, but other important participants in loan workouts.
Areas featured in the book are:
* What loan workouts are and why they are needed
* Non-performing loans related strategies, organization and systems
* Participants involved in loan workouts and their motivations
* Symptoms of corporate distress and corporate turnaround strategies
* Major steps involved in a typical loan workout transaction
* Special issues relating to debt for equity swap transactions
* A case study illustrating many of the issues covered in the book
Foreword by David Wilson Havelock.

INTRODUCTION AND BACKGROUND.

Introduction.

Loan Workouts: What They are and Why They are Needed.

STRATEGY, PARTIES AND THE PROCESS.

A Framework for Managing Non-Performing Loans.

Organisation and Systems Relating to Non-Performing Loans.

Managing Loan Workout Transactions.

The Company.

The Banks.

Other Key Participants in Loan Workouts.

External Advisors.

A Framework for Executing Loan Workouts.

Turning Around a Business.

The Information Gathering and Review Process.

Exploring Loan Workout Options.

Evaluating Restructuring Options and Developing Proposals.

Negotiating and Completing Transactions.

THE MORATORIUM AND FINANCIAL RESTRUCTURING.

Establishing a Moratorium.

Financial Creditors Affected by a Moratorium

The Operation of Facilities in a Moratorium.

The Concept of Loss-Sharing.

Multi-Currency Considerations.

Financial Restructuring.

Inter-Creditor Provisions in a Financial Restructuring.

Other Terms and Conditions.

Introduction to Debt for Equity Swaps.

Transaction Approach.

Equity Instruments.

Other Transaction Parameters.

Other Technical Issues.

CASE STUDY.

Project Gloucester.

Index.
"The book is needed quite simply because there is a dearth of information on corporate restructuring. At present the number of receiverships is going down and the emphasis is on workouts. In this respect the book is very timely.", , , #"I", , , #