The new post pandemic normal requires that financial and banking institutions are systematically screening their loan portfolios to pro-actively act towards customers by providing fast and fair restructuring for still viable businesses.
How does lenders leadership approach debt restructure in an environment of uncertainty and high volatility? A key question is the extent to which support measures in this crisis have had the effect of merely postponing or durably preventing a large wave of corporate insolvencies. How big a wave of insolvencies should we expect? The ECB “estimates that corporate insolvencies are likely to increase as support measures are withdrawn and liquidity constraints morph into solvency issues”.
A key challenge remains distinguishing between viable and non-viable firms as support measures are being mainly phase out. Three actors usually contribute to the viability screening: public authorities, creditors and companies themselves (and, in addition, providers of specialized data/ information/advisory).
“Restructuring: fast and fair – Debt restructuring can help preserve going-concern value, avoid lengthy and costly court procedures and reduce potential congestion of insolvency courts.” (European Systemic Risk Board, April 2021).
EU member states are required to put in place preventive restructuring frameworks in accordance with the EU Restructuring and Insolvency Directive of 2019. The supporting role of banks during debt restructuring is critical. Public authorities need to work with financial institutions to address overleverage.
The European Banking Authority’s (EBA) latest Risk Dashboard points to stabilizing return on equity in EU Banks but challenges remain for those banks with exposures to the sectors most affected by the pandemic. While the nonperforming loan (NPL) ratio declined, asset quality of loans under moratoria and public guarantee schemes (PGS) further deteriorated. It remains paramount that banks keep on addressing any deterioration in asset quality proactively. The European Commission also published its new NPL action plan in December 2020 and is in the process of implementing some of its actions, with the support of the ECB and the EBA. What are its strategic axes and expected implications within restructuring activity?
- Understand the main principles and phases of Corporate Debt Restructuring post pandemic.
- Understand the real world of multi creditor consensual restructuring transactions, the scope and the role of restructuring managers.
- Understand the foreseen implications and different scenarios that could be considered in the restructuring implementation.
- Lessons learnt from practical experience and gain insights into best practices in Corporate Debt Restructuring.
I. Debt restructuring and the challenges post pandemic
1. Fast and fair restructuring
– How to distinguish between viable and non- viable firms as emergency pandemic measures are being phaseout?
– Roles of financial institutions and of public authorities as major creditors post pandemic
– Preventive restructuring frameworks in accordance with the EU Restructuring and Insolvency Directive of 2019
2. How does lenders leadership approach restructuring debt in an environment of uncertainty and high volatility?
– Relationship between customer support and regulatory requirement
– The importance of stay and exit decision of the creditor at strategic level
– Pro-active approach from relevant stakeholders within restructuring process -first mover matters
– Examples of regulatory actions with potential impact within financial restructuring activity
3. Q & A
II. What are Corporate Debt Restructuring phases?
1. Main principles and phase of restructuring
– Pre-restructuring, decision making, case set up, structure and negotiation, implementation
– Borrower engagement
– What changes of the market practice are required?
2. How to deal with effective Corporate Debt Restructuring implementation?
– Perform effective portfolio screening and credit risk assessment
– Achieve lenders consensus – Pro-active transaction leadership
– Detailed guidance and check list for restructuring managers
– Lessons learnt and practical examples of restructuring from different industries
3. Q & A and Conclusions
The webinar will be highly interactive.
Directors and Managers of Restructuring Workout and Risk Management, Commercial/ Corporate/Investment Bankers and any Stakeholder with an interest, implementation or responsibility in the areas of debt restructuring.
Number of participants: limited to max 12
The webinar will be highly interactive, based on discussions and case studies.
Dana Dulciu, EMBA Presenter/Trainer, Executive Director Special Exposure Management Network Units, Raiffeisen Bank International AG (Vienna); expert of the EC NPL Advisory Group
Dana is Executive Director acting as Head of Special Exposure Management Network Units Department within Raiffeisen Bank International AG (RBI), headquartered in Vienna since 2016. She is leading a team of international workout specialists that manage large non-retail restructuring cases and portfolio strategies, steering the underlying processes within RBI.
After spending nearly 20 years working in loan workout, Dana knows what truly drives nonperforming loan (NPL) reduction within Central and Eastern Europe and current challenges of the financial institutions within a highly volatile and business environment. She has been recently selected within experts of the European Commission NPL Advisory Group having as main mission support the implementation of the European action plan to tackle NPLs’ post pandemic.
In addition to her extensive practical experience, Dana is also specialist in turnaround and insolvency, being member of INSOL Europe, Turnaround Management Romania and UNPIR. Dana holds an EMBA in General Management from the University of Sheffield and graduated from the Academy of Economic Studies Bucharest. She is passionate learner and effectively engaged into digital transformation. Public professional speaker and a strong ambassador of diversity & inclusion.
March 24, 2022 (1,00 pm – 5,15 pm)
REGISTRATION: by March 15, 2022
DURATION: 4 hours (net)
The webinar will be delivered using ENVISIA Online Platform, allowing the virtual participation, both from home or from work, with no risks associated, using just a browser. After the registration to the course, one day before the online sessions took place, the participants will receive a link to access the virtual classroom.
Fee for the course
200 EUR + VAT
A digital CERTIFICATE will be issued by ENVISIA after the course.
Gabriela HÂRŢESCU, PhD COO & Dean, Member of the Board
ENVISIA Business School