Corporate Debt Restructuring Course

Why select this training course?

The corporate debt restructuring course by Rcademy will highlight the important concepts required to practice and be considered in any corporate debt restructuring plan. It will give participants an overview of the legal and economic requirements for restructuring a debt crisis.

What is corporate debt restructuring?

Corporate debt restructuring refers to reorganizing a company’s debt obligations to improve its financial position and sustainability. This may involve modifying the terms of existing debt, exchanging debt for equity, or negotiating with creditors to reach a mutually acceptable agreement on debt repayment. It is typically pursued when a company is facing financial difficulties and cannot meet its debt obligations as they come due. This can result from various factors, including economic downturns, changes in market conditions, or poor financial performance.

How does one become a professional in corporate debt restructuring?

A bachelor’s degree in finance, economics, accounting, or a related field is a good starting point for a career in corporate debt restructuring. To become a professional in corporate debt restructuring, gaining practical experience in the field is important. This can be achieved through internships or entry-level positions in finance. Obtaining professional certifications can demonstrate expertise and credibility and enhance career opportunities. Building strong relationships with other professionals in the field can provide valuable networking opportunities and help you stay up-to-date on industry trends and developments. Lastly, Staying informed on the latest financial and economic developments, as well as changes in laws and regulations that impact corporate debt restructuring, is essential to succeed in this field.

The Corporate Debt Restructuring Course by Rcademy will enable participants to be skilled with the necessary and required techniques to handle corporate debt restructuring as well as trained and experienced professionals in the field, thus increasing their organization’s profitability by cutting down on debt losses. The course will also give a detailed legal analysis of the existing international corporate debt restructuring perspective from the debtors and the creditors to ensure it is all-around and enriching. There will be a practical and useful guide for all the creditors with bad debtors and a practical process guide for the available options to deal with a distressed debt with the necessary steps to attain their goals. Learning the skills provided in this course will give the participants an upper hand in career development in the financial sector, particularly regarding corporate debt restructuring, by giving them skilled and real-world experienced.

Who should attend?

The Corporate Debt Restructuring Course by Rcademy is ideal for the following professionals:

• Investment bankers
• Distress debt investment groups
• Credit and equity analyst
• Distress debt managers
• Private equity officers
• Accountants
• Any interested professional

What are the course objectives?

The objectives of The Corporate Debt Restructuring Course by Rcademy are to enable participants to:

• Understand the most significant process of debt restructuring
• Identify the constituent elements of typical debt structures
• Recognize the important roles of jurisdiction and the effects of forum shopping
• Handle in a successful way protective documentation
• Discover the recent developments in the international insolvency practice that is drawn from various law models
• Understand the rules and fundamental requirements of bankruptcy in the various regime
• Know how to reorganize structures and evaluate alternative strategies
• Understand the requirements of bankruptcy in emerging markets and the dangers that it poses to creditors
• Understand the concept of migration risk

How will this course be presented?

This Rcademy course will be facilitated by experts using the following methods:

• Presentations
• Videos
• Lecture notes
• Exercises
• Examples and case studies

What are the topics covered in this course?

Module 1: Insolvency 

• The existing standstill
• Comparison of insolvency in various countries
• Restructuring and the Roles of Directors
  – Duties and responsibilities
  – Groups of directors
• Vulnerable transactions
  – Jurisdiction of the court
  – Transactions at an undervalue
  – Avoidance of floating charges
  – Preferences in transactions
  – Creditors defrauding process
• Inability to pay debt principles of tests and their relevance to restructuring
  – The cash flow test
  – Overview
  – The balance sheet test
  – The test of inability to pay debts
• Avoidance of actions
  – The preferences
  – Conveyances fraudulent

Module 2: Supervised Vs Out-Of-Court

• Plans standards
  – Overview of plans
  – Feasibility and other confirmation standards
  – Best interest test
  – Priority rule
• Workouts and restructuring methods
  – Considerations in out-of-court workouts
  – Potential for failure and consequences
  – Advantages and disadvantages of workouts
  – Typical out-of-court approaches and techniques
• Offers and exchanges
  – Common tactics in the debt exchange offer
  – Reasons for doing a debt exchange offers
  – Income tax considerations and accounting
  – Securities law considerations

Module 3: Insolvency Proceedings and EC Regulations 

• Introduction to EC regulations
• Rights of creditors
• Choice of the law rule
• Interpretation of existing legal frameworks
• International jurisdiction
• Judicial cooperation
• EC’s relationship with Brussels regulations
• Recognition of proceedings
• Group company’s insolvency management
• Sharing of IFC framework

Module 4: Packaged Plans

• Pre-arranged plans
• First-day filings
• Post-confirmation activities
• Pre-packaged plans
• Advantages and disadvantages of a pre-arranged and pre-packaged plan
• The Sub Rosa plan
• Feasibility
• Recent developments: the case of Chrysler and General motors 
• Administration of Chapter 11
• Differences in theories in administration compared
• Perceptions of administration
• Differences in practice

Module 5: Receivership and Restructuring 

• Retail businesses
• Process of a voluntary arrangement
• Moratorium in a voluntary arrangement
• Pre-packaged and corporate debt restructuring
• Pre-pack guidelines
• Challenges of voluntary arrangement and the Role of Companies
• Courts’ approach to pre-packs
• Criticisms of pre-packs
• The Role of Receivership in Restructuring
• Schemes of arrangement and the relationship with corporate debt restructuring
• Stages of a scheme and related issues
• Valuation of companies

Module 6: Cross-border Insolvency

• Introduction to UNICITRAL model law
• The scope of applications
• How to interpret UNICITRAL model law
• Recognizing the schemes of arrangement
• The objective of cross-border insolvency
• History of cross-border insolvency
• General overview
• Mechanics of cross-border insolvency

Module 7: Foreign Debtors

• Additional protections
• The automatic stay
• Debtors in possession of financing
• The relief in an automatic stay
• Litigation regarding available relief
• Notable litigation arising
• Areas of potential improvement in litigation

Module 8: The Cross-Border Insolvency Regulations

• Implementation of cross-border insolvency regulations
• Relationship between the regulations and other bases of recognition and assistance
• Effects of recognition
• Cross-border cooperation
• The key definition of the cross-border insolvency regulations
• Commencement of concurrent proceedings and coordination of relief
• Important guidance of UNICITRAL
• Foreign proceedings and relief
• Transactions in corporate debt restructuring
• Theories in cross-border insolvency
• Advantages of regulations to corporations
• Choices of regulations

Module 9: Key Drivers In Debt Restructuring

• Different types of loan resolution problems
• Non-performing loans and challenges
• Leveraged loan markets and its current position
• Identifying the triggering in deciding when to restructure
• How to deal with problems of clients that have not defaulted
• Warnings of potential distress
• Different restructuring and recovery methods
• Review of different legislations in restructuring
• Implementing the restructuring process