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Distressed Financing Modelling

Eureka Financial
Course summary
7 hours
695 GBP excl. VAT
Part time
Online courses
Next available date: 21/10/2021 09:00 - Online courses
Professional Training

Course description

Distressed Financing Modelling

We offer this programme as a virtual course split into 2 sessions of 3.5 hours each on 21 & 22 Oct 2021 between 2 - 5.30 p.m. UK time. The course is conducted by a senior corporate finance expert with over 20 years of experience.  

In the current market environment many companies are going through financial distress and are unable to meet their obligations. They, or potential buyers may consider various options from raising capital, selling assets or restructuring debt to the liquidation.

Conducting valuation of a distressed company and assessing various financial options poses specific challenges. This practical, computer based, 1 day course conducted by a senior City expert, focuses on the analysis of companies that have become distressed and will equip you with the skills and strategies for distressed financing modelling.

Through a mix of lecture and case studies you will learn to achieve a detailed understanding of distressed companies, including:

  • Reviewing the capital structures and model different alternatives
  • Understanding a liquidation value based on contractual and structural debt subordination
  • Grasping a debt restructuring valuation including modelling debt forgiveness, debt-to-equity swap and cash flow affordability of the restructured operational business
  • Modelling the various options for the debt holders and creditors of a distressed company

Suitability - Who should attend?

From investment banks, private equity and investment firms:

  • Financial analysts and associates
  • M&A Professionals
  • Distressed debt investors
  • Finance and legal professionals involved in restructuring

Outcome / Qualification etc.

On completion you will receive a set of course materials and course certificate. 

By the end of this course you will be able to: 

  • Understand the differences between a stressed and distressed company
  • Analyse capital structure and financing options
  • Conduct the valuation of a distressed company
  • Explore strategic options from capital rising to debt restructuring and liquidation
  • Model various options for the debt holders and creditors to decide the order of debt repayment in a liquidation

Main topics

  • Analyzing from stressed to distressed scenarios
  • Contractual and structural subordination
  • Strategic options for distressed companies from raising capital to debt restructuring and liquidation
  • Modelling and valuation for distressed companies
  • Valuation of companies under different options
  • Assessing liquidation value
  • Debt capacity and cash flow repayment capabilities
  • Modeling Liquidation
  • Modelling of the debt under restructuring scenarios
  • Debt capacity and cash flow repayment capabilities
  • Debt-equity swaps

Training Course Content

Introduction to Distressed Companies

  • From stressed to distressed scenarios
  • Where is the debt in a multinational, contractual and structural subordination?
  • Contractual subordination
    • Senior, subordinated and preferred equity
    • Secured vs. unsecured
  • Structural subordination
    • Borrowing entity
    • Maturity
    • Upstream and downstream guarantees

Strategic Options for Distressed Companies

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


Modeling & Valuation for Distressed Companies


  • Valuation of companies under different options
    • Going concern, liquidation and restructuring
  • Liquidation value
    • Recovery rate
  • Going concern
    • EBITDA multiples
  • Restructuring
    • Debt capacity and cash flow repayment capabilities
    • Debt forgiveness
    • Payment extensions
    • Debt-equity swaps


Modeling Liquidation


  • Balance sheet insolvency vs. cash flow insolvency
  • 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
  • Payment of net assets liquidation based on contractual and structural subordination


Modelling Debt Restructuring


  • Modelling of the debt under restructuring scenarios
    • Debt capacity and cash flow repayment capabilities
    • Debt forgiveness
    • Payment extensions
    • Debt-equity swaps

Expenses

  • Early bird price: £695 + VAT
  • Regular price: £850 + VAT

10% discount for 3 people. There is no VAT if you are based outside of the EU. 

About provider

Eureka Financial - Expert in Banking and Finance, Regulatory, Risk and Wealth Management Training.

Eureka Financial is a provider of banking, finance, regulatory, risk and wealth management training courses. We also offer some business management and soft skills training programmes. Based in London, UK, we organise public courses in London as well as tailored in-house...


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Eureka Financial

22 A St Jame's Square
SW1Y 4JH London

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www.eurekafinancial.com


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