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Euromoney Learning Solutions

Early Warning Signals, Problem Loans & Restructuring

Nov 7, 2019
Jakarta, Indonesia
USD 1495
USD 1495 per day

How it works

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Description

Manage credit deterioration with this 1 day course

Participants will manage Credit Deterioration to avoid or minimize credit losses.

Course Objective:

  • Monitor credit exposure effectively
  • Take actions before the credit deterioration is apparent
  • Take necessary actions to minimize credit losses before a credit default
  • Take protective actions upon a credit default
  • Make rational decisions for the defaulted credit
  • Restructure the defaulted credit to maximise value.

Methodology

Combination of classroom discussion, Q&A and case studies

Course Duration

One Day

Course Agenda

  1. Review of Credit Analysis via 5P approach

Credit Analysis – Profile

  • Top down approach to non-financial analysis: Macro, Industry, Company, Business, People.
  • Credit Analysis – Purpose
  • Credit Policy, Regulations, Compliance, Sources of repayment, Justification.
  • Credit Analysis – Payment
  • Financial performance and condition of counterparty
  • Repayment ability of counterparty
  • Credit Analysis – Protection
  • Alternative sources of repayment
  • Different steps to mitigate credit risks
  • Credit Analysis – Perspective
  • Underwrites credit risks after thorough assessment of risks assessed under the 4Ps
  1. Credit Monitoring – Early Warning Signals
  • Consolidated all risks identified by 5P credit analysis
  • Create a system to monitor these risks periodically
  • Review all financial information received or released in the public space promptly.
  • Share prices movement
  • Moody’s KMV-EDF
  • Covenants checking
  • Stress the risk factors periodically
  • Customer visit / Site visit
  • Qualitative indicators and quantitative indicators
  1. Pre-Default
  • Verify triggered warning signals thoroughly
  • Maintain good relationship with counterparty
  • Review all documentation
  • Ensure all collaterals arrangements are still valid
  • Additional credit enhancements
  • Freeze uncommitted facilities
  1. Defaulted Credits
  • Engage the lawyers to review all documents, all collateral arrangements and any credit enhancements
  • Three main groups of stakeholders to manage
  • Maintain working relationship with the counterparty
  • Contact every creditor to ensure collective actions
  • Standstill agreement
  • Due diligence by auditors and professionals
  • Viability of business and cash flows
  • Establish going concern
  • Determine sustaining debt level and debt capacity
  • Evaluate its balance sheet and establish net asset values in various scenarios
  • Crystalize all credit enhancements
  • Compensation for restructuring
  • Secondary market sales

Exercises: Discuss and implement the solutions to the examples of real distressed cases

Experts

Arnold’s banking career spanned across a number of major European and Asian banks, lending to many industries including but not limited to mining, conglomerates, manufacturing, trading, commodities, services, infrastructure and financial institutions. A banker is a complete banker only when he le...

Next dates

Nov 7, 2019
Jakarta, Indonesia
USD 1495
USD 1495 per day

How it works

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