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Training Course Summary:

Since the recession of the early 90s, it has become generally accepted that creditors are likely achieve higher recoveries if a company is rescued from insolvency and restructured by a turnaround manager rather than liquidated with a fire sale of its assets. This new ‘rescue culture’ has been underpinned by the Insolvency Act 2000 and the Enterprise Act 2002. Although insolvency is a very specialised area of corporate finance, directors, advisers and potential turnaround managers will benefit from a clear understanding of the options available for companies in financial distress so that appropriate action can be taken while there is still time to make a difference.

Training Course Overview/Content:

Corporate insolvency
Turnaround, breakup or liquidation?
Directors’ responsibilities & liabilities
Wrongful and fraudulent trading
The Insolvency Acts (1986, 2000)
The Enterprise Act 2002

Paths to survival or liquidation
Company voluntary arrangements (CVAs)
S. 425 schemes of arrangement
Administration (new procedures)
Administrative receivership (new restrictions)
Voluntary liquidation
Compulsory liquidation

Debt restructuring
Debentures, mortgages, charges, pledges & liens
Loan representations & warranties
Financial covenants
Debt priority on insolvency
Force majeure & MAC clauses
Default & remedies

Major rescheduling
In court/out of court
The role of the lead bank
Conflicting interests
Negotiating with bondholders
Handling vultures & freeloaders
The distressed debt market

Corporate turnarounds
Is it worth it?
Financial distress & the slippery slope
Gradual decline/quick descent
Selecting a turnaround manager
Assessment of the management team
Immediate action & crisis mentality
Cash flow focus & crisis stabilisation
Formulating a workable restructuring plan
Sink or swim