Objectives: 

This course provides participants with some understanding on the circumstances under which debt restructuring is required as well as the pre-requisite conditions for a successful debt restructuring exercise. The course will first look at traditional approaches to debt restructuring without the use of stock and capital market instruments. Then participants will be taught some fundamental knowledge of the various stock and capital markets instruments & understand their use in corporate debt restructuring. 

Who should attend? 

• Credit Officers
• Relationship Managers
• Recovery Officers     

Course Outline: 

Circumstances under which Debt Restructuring is required.

Conditions or Environment Required for Successful Debt Restructuring

 Overview of the Stock and Capital Market Instruments 

Review of Time Value of Money: 

• Present Value
• Future Value
• Annuities
• Determining Rate of Return 

Use of Time Value of Money Concept in Traditional Debt Restructuring 

• Conversion of Current Lines to Term Loan
• Principal Moratorium
• Interest & Principal Moratorium
• Interest Concession for a Stipulated Period
• Partial Interest Forgiveness

Understanding Relevant Characteristics & Valuation of Capital Market Instruments: 

• Bond
• Preferred Stocks
• Common Stock
• Warrants
• Convertibles 

Common Features Used in Debt Restructuring: 

• Coupon Vs Zero Coupon Bonds
• Use of Low Coupon
• Cumulative Vs Non Cumulative Dividend
• Secured Vs Unsecured
• Redeemable Vs Irredeemable
• Guaranteed Vs Non Guaranteed
• Put & Call Option 

Determination of Appropriate Swap Ratio of Debt with Capital Market Instrument

Determination of Appropriate Conversion Price 

Equity Restructuring & Their Implications in Restructuring: 

• Relevant Equity Ratios
• Bonus Issue/Stock Dividend
• Stock Splits
• Rights Issue
• Capital Reduction
• Share Repurchase
• Backdoor Listing/Reverse Takeover

 Case Studies on Use of Capital Market Instruments in Restructuring in South East As  Course Summary and Conclusion

WORKSHOP STYLE: 

This will be a participative workshop with a mix of interactive learning sessions, exercises and discussions aimed to provide maximum impact and learning retention for all delegates.