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Restructuring and Distressed Debt

City Training UK
Course summary
1 day
750 GBP excl. VAT
English
London
Next available date: Contact City Training for information - London
Open / Scheduled

Course description

Accounting/Financial Statement Analysis Course

Restructuring and Distressed Debt

This course focuses on modelling restructuring for distressed companies. We explore and model the steps facing distressed corporates, including debt restructuring packages, in-court and out-of-court settlements and liquidation. We look at the perspective of distressed corporates, debt holders and creditors.

Suitability - Who should attend?

  • Financial analysts and associates in investment banks
  • Distressed debt investors
  • Finance, legal professionals involved in restructuring
  • All other interested Finance professionals

Training Course Content

Insolvency and Valuation

  • Balance sheet insolvency
  • Cash flow insolvency
  • Link between Enterprise Value and Equity Value
    • Equity value is zero and debt trades below book values

Subordination

  • Secured vs. unsecured
  • Contractual
  • Structural
  • Guarantees

Strategic Options

  • Raising capital
  • Debt restructuring (out-of-courts)
  • Debt restructuring (in-court)
  • Asset sales
  • Sell the business
  • Liquidation

Valuation Methodologies

  • Liquidation vs. going concern
  • Liquidation value
    • Recovery rate
  • Going concern
    • EBITDA multiples

Valuation issues

  • Limited time for due diligence
  • Usefulness of historical record as a proxy for the future
  • Management issues

Recovery Values

  • Asset liquidation value usually estimated as a % of book value
  • Most liquid assets (cash and marketable securities): 100% recovery rate
  • For most assets only a fraction of book value recoverable
  • Liquidation fees

Case Study I: Modelling of different recovery values of an industrial company

Priority Ranking

  • Contractual subordination
    • Senior, subordinated, preferred and equity
  • Security
  • Structural subordination
    • Borrowing entity
    • Maturity
    • Guarantees

Distressed Companies – Financial Modelling   

  • Workout of Schefenacker, a German auto-parts manufacturer
  • Valuation of companies under different options
    • Going concern, liquidation and restructuring
  • Modelling of the debt under restructuring scenarios
    • Debt forgiveness, payment extensions, debt-equity swaps

Case study II Detailed modelling of Schefenacker workout

Expenses

The course described above can be individually tailored to suit the needs of your organisation and the participants. If you would like to discuss the development of an in-house training course contact City Training below. 

About provider

City Training UK

City Training is a highly-distinguished supplier of premium public courses, in-house training, and courses for universities and schools. The company focuses solely on financial training and covers the areas of financial accounting, corporate finance, valuation, credit analysis, regulatory capital, mergers and...


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Contact info

City Training UK

100 Pall Mall, Saint James
SW1Y 5NQ London

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citytraininguk.com

Reviews

Average rating 4.8

Based on 10 reviews

Aritri - Analyst, hedge fund
(5)
It was a great learning experience providing rich knowledge in distressed debt.
Matt B. - Analyst, debt fund
(5)
The instructor was very knowledgeable and went out of his way to answer questions
Freeman P. - Associate, investment banking
(5)
The course was very good and allows us to get in contact with the most important forms of debt restructuring.
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