A hands-on 2-day workshop on recognizing emerging problem transactions and implementing a process for effectively managing and maximizing recoveries, with reference to the Insolvency & Bankruptcy Code
Banks that effectively manage their non-performing transactions understand the need for a disciplined structured approach to this key issue. This programme specifically addresses the management of non-performing transactions in India following the approval and implementation of the Insolvency and Bankruptcy Code (‘IBC’).
The workshop will cover fundamental issues and solutions:
• Why borrowers and investees fail: the well-documented causes of failure, and how they differ from warning signals of impending failure
• Financial and non-financial warning signals of impending failure
• What a bank should do when a borrower defaults or looks like it is about to default
• The five basic strategies available to a bank, and how to select the mix of strategies that suits each individual non-performing loan
• Practical measures in implementing the strategy identified for each non-performing loan and default
• Accountability: ensuring that lessons are learned from non-performing loan losses
The emphasis of the Workshop:
• Practical 'know-how' from a seasoned practitioner who has many years of hands-on, practical knowledge in the management of non-performing transactions in Australia and across the Asia-Pacific and African regions, including more than 3 years managing non-performing loans and equities for the Asian Development Bank, and a 12-month contract managing non-performing loans for the African Development Bank
• Key emerging threats and vulnerabilities in banks’ loan portfolios
• The importance of acting quickly to take control of an actual or potential default
• The five alternative key strategies for the management of non-performing transactions, and how to apply critical elements of the four strategies to each non-performing loan
Each session will be supported by an interactive discussion, real-life examples and a range of exercises carefully designed to illustrate the issues under discussion
Benefits of Attending:-
Each session will comprise:
Who Should Attend?
• Head of restructuring, recovery and stressed loans
• Head of special asset/ workout groups
• Legal counsel specializing in insolvency, restructurings and/or distressed debt
• Investors in distressed debt and NPLs (e.g. hedge funds, private equity funds, etc)
• Asset Management Companies (AMC’s) / Asset Reconstruction Companies (ARC’s)
• Chief Credit Officer
• Chief Credit – Risk Officer
• Chief Risk Officer
• Project Finance Officers
• Officer’s focusing on loan monitoring, asset management, and/or loan recovery
Day 1
Session 1: Understanding why companies fail – if the cause(s) can’t be identified, the solution cannot be identified either
Session 2: The new Bankruptcy & Insolvency Code Presented by lawyers
• Basic principles of the new Code
• How does it change things for Indian bankers?
• How does it change things for corporate and commercial borrowers in India?
• How does it change things for guarantors, sponsors, directors and other exposed parties in India?
Session 3: Warning signals of potential failure:
• Financial signals
• Non-financial signals
Session 4: Identifying the appropriate strategy:
• Due diligence, investigating accountants’ reports, expert advice, etc.
• Legal briefing on the impact of the new Code on determining and implementing the alternative strategies Presented by lawyers
• Issues arising from the globalized financial market, the global financial crisis, the spread of derivative products
• Meaningful dialogue with stakeholders:
- Other lenders & different levels of priority
- Actual & contingent creditors
- Minority shareholders, the controlling family & others
- Government agencies
- Franchisees & others
• Environmental risk
Session 5: How a bank should handle problem loans:
• Reliable, accurate, meaningful & relevant forecasts
• Selecting the appropriate strategy
• Dealing with the borrower’s immediate needs
• Implementing a bank-relevant reporting system within the borrower
• Establishing & maintaining approvals within the bank
• Shadow directorships
• Lender liability
Day 2
Restructuring:
• Identifying the sustainable business
• Devising the appropriate structure through understanding the respective strengths & weaknesses of the various parties
• Contributions towards the restructuring:
• Dealing with non-core businesses
• Dealing with non-core assets
• Dealing with intangible & incomplete assets
Alternative approaches when negotiations fail:
• Litigation
• Aggressive collection
• Arbitration
• Mediation
• Review of director conduct & preferential payments
• Does the new Code facilitate alternative approaches, and how does it impact on timing?
Andrew McRobert is a commercial banker specializing in restructuring, insolvency and with nearly 32 years’ experience in credit, portfolio risk management, lending, and problem loans management. He has worked with some of the world's leading financial institutions including: Asian Development Bank (ADB), International Finance Corporation (IFC), Citicorp, Jakarta Initiative Task Force (JITF), African Development Bank, Development Bank of South Africa (DBSA), Price Waterhouse Coopers (PWC), and Coopers & Lybrand.
Andrew is a qualified Chartered Accountant, a Senior Fellow of the Financial Services Institute of Australasia, and a Graduate Member of the Australian Institute of Company Directors. He has a demonstrable track record of identifying and implementing restructuring & recovery strategies for complex non-performing investments and loans all across Australasia, Asia and Africa; and is also experienced in conducting due diligence assignments, high-level problem resolution negotiations and team building in credit and portfolio risk management.
He is an engaging speaker and presenter and has developed and led very highly rated programs; consulted with clients across Asia Pacific, Africa, & Middle East including Malaysia, Indonesia, Singapore, Sri Lanka, India, Pakistan, Bangladesh, Philippines, Thailand, Australia, South Africa, Ghana, Kenya, Ethiopia, Zambia, Uganda, Tanzania, Oman. UAE, & Saudi Arabia.
He has co-authored three acclaimed texts "Corporate Collapse” (published by McGraw-Hill), “Financial Literacy for Lawyers, Investors and Lenders” (published by Thomson Reuters) and “Financial literacy - Lessons from Centro” (published by Thomson Reuters).
Ms. Veena Sivaramakrishnan is a key Partner in the Firm's Banking and Finance and Insolvency and Bankruptcy Practice with over 14 years of experience. She has significant experience in Banking and Finance, Financial Services Regulatory, Derivatives, Insolvency, Bankruptcy and Restructuring. She has been consistently recognised by prestigious Indian and international publications (including Chambers and Partner and Asia Law Profiles) individually and within her areas of practice.
Prior to working at Shardul Amarchand Mangaldas & Co., Veena has worked at Juris Corp for over a decadeacross varied areas of practice impacting banks and financial institutions and at ICICI Bank mainly for its offshore operations. While at ICICI, she was also based in Canada and worked with Davis Polk and Wardwell in New York on secondment primarily to set up the New York branch of ICICI. Across the years, she has been advising banks and financial institutions in their financing strategy to Indian clients and on host of issues they encounter while operating in India and / or dealing with Indian entities and their subsidiaries / offshore operations. She has evaluated complex structures with interplay of multiple jurisdictions and legal systems while advising clients on financing structures, restructuring and enforcement.
Ambarish is a Partner at Shardul Amarchand Mangaldas & Co. His practice focuses on mergers and acquisitions, specifically, an acquisition through a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC).
Ambarish has been involved with IBC from its inception. He has represented resolution applicants in some of the early and highly contested cases of corporate insolvency. Ambarish has also been actively involved on the policy related to IBC, and has assisted in the work of the Insolvency Law Committee, constituted by the Ministry of Corporate Affairs.
VCC Events opens up the avenues for participation. Join hands to be a part of India’s largest gathering of alternative investments leaders, industry stakeholders and Asia’s influential limited partners, general partners and marquee advisors. Your chance to actively participate and augment yourself as thought leaders.
Hotel Four Seasons, Mumbai
Date: July 30-31, 2019
Venue: Hotel Four Seasons, Mumbai
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