Loan Workouts and Debt for Equity Swaps

The importance of corporate rescues has grown dramatically in recent years, as lenders increasingly look for ways of restoring viable companies to health. The need for a successful strategy on loan workouts has been highlighted in recent years with problems not only in the old Eastern Block countries, but the East Asia crisis and most recently Japan as well. Banks in the more developed countries continue to experience periodic intensification of problem loans in their portfolios. The authors examine how a successful loan workout can be managed. They detail the processes and participants involved, whilst providing frame-works and practical step by step approaches that allow for coherent and cohesive policy to give the best possible chance of success. In this way, the book assists in the ultimate aim of providing a firm base for the future health of the company involved and maximising the lenders' returns. This work is not merely restricted to companies and banks involved in the process, but other important participants in loan workouts. Many experts in the financial sector will welcome this book, especially those specialising in multi-lender loans and corporate rescue and their knowledge of the subject enables them to explain the theories in a detailed, accessible style. Among the items featured are: * What loan workouts are and why they are needed * Non-performing loans related strategies, organisation 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 * Using reporting accountants and other professional advisors effectively * Moratoria, or standstills, and the effects and consequences these may have * Technical issues relating to loan restructuring, especially in multi-lender cases * Special issues relating to debt for equity swap transactions * A case study illustrating many of the issues covered in the book