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Executive Short Courses

Managing Problem Loans

Two women in a classroom

Gain the key skills required to manage and operate a problem loan assessment and recovery system.

This two-day course is designed to provide Credit Managers, Recoveries Managers, Heads of Departments and senior staff with the key skills that they require to manage and operate a problem loan assessment and recovery system. The emphasis is on both the practical and the theoretical with cross border case studies, legal implications and examples throughout the course including opportunities for discussions so that delegates can pool their experiences and learn from mistakes and successes.

Learning outcomes

Course delegates will obtain a detailed and practical appreciation of the challenges facing the “problem loan” team and will be able to apply a mixture of hands on and automated skills by the finish. 

Specifically delegates will consider:

  • What goes wrong and how to spot and prevent it – and timing
  • Strategies, planning and procedures
  • Understanding implications of structures used in debt facilities
  • Legal implications for international cross border facilities
  • Role of agents and key players in restructuring process of syndicated facilities
  • Management systems
  • Restructuring solutions

 Who should attend? 

  • Managers in Recoveries
  • All senior and support staff involved in recoveries
  • Heads and Managers of corporate finance
  • All senior and support staff involved in corporate finance
  • Lending Managers
  • Inspection/Audit staff
  • In-house legal staff
  • Private Equity and Institutional Investors involved in the loan product
  • Anyone with an interest or responsibility for corporate lending

Some knowledge of bank lending and debt recovery systems would be an advantage but is not essential. The content of the course can and will be tailored to meet the needs and experience within each delegate group.

Course outline

  • Implications for banks and the development of debt restructuring markets
  • What lessons can be learnt from previous cycles. Similar issues or not?

  • Understanding the key issues and warning signals of a borrower in distress; some common themes:
  • Liquidity analysis
  • Off-balance sheet liabilities
  • The importance of initial data gathering
  • Risk/reward considerations

  • Designing and implementing a debt management system
  • Planning the process
  • Setting up procedures
  • Early signs and how to spot them
  • Systems/strategies for monitoring potential problems

  • Understanding implications of debt structures
  • Cross border issues in group companies
  • Due diligence and information rights in agreements; the hamburger strategy
  • Multi tranched facilities v borrowers with multiple debt facilities

  • Syndicate control, majority/unanimous decisions and implications when not reached
  • Financial covenants – breaches and cross default triggers
  • Material adverse effect clauses
  • Consequences of an event of default
  • Transfer rights and restrictions – some issues to consider under differing jurisdictions
  • Sub-participants, their rights and elevations
  • Guarantees and security – what has actually been taken and perfection issues under differing jurisdictions
  • Intercreditor agreements and waterfall of funds

  • Key features of the appointment: company
  • INSOL statement of principles for multi-creditor workouts
  • Political pressures? Potential implications for major banks and their trading strategies
  • Role of co-ordinating committee and purpose of appointment
  • Compliance issues

  • Location of pertinent information
  • Market related data
  • Valuation techniques
  • How assumptions are formulated and for what purpose
  • How data on values is used

  • Consensual restructurings
  • Non-consensual restructurings
  • When are Debt-Equity Swaps a viable solution?
  • What are the practical implications?
  • Negotiating power of shareholders
  • Directors’ and Lenders’ Liability issues

  • What to look for in a loan agreement
  • Eligibility of transferee
  • Novation v assignments
  • Distressed debt and insolvent claims
  • Transfer of guarantees and assignments

Dates and location 

Dates: 

3 - 4 July 2017

Location:

The London Institute of Banking & Finance
Peninsular House, 36 Monument Street
London, EC3R 8LJ

Course instructor 

Headshot of Simon Ling-Locke

Simon Ling-Locke MBA, FCIB, DipFS, PGCHE

Simon Ling-Locke was the head of the European leverage finance and corporate teams at UFJ Bank and managed a book of over USD2 billion in assets. Overall he has in excess of 30 years banking experience in the international markets and has spent 25 years working in the syndicated loan market gaining a wide range of experience across risk management in major banking organisations including Barclays, Tokai and UFJ banks. Before embarking on his career as a full time trainer, lecturer and consultant, Simon headed up and developed the training activities at the Loan Market Association (the association for the syndicated loan market for the European and Middle East regions).

Professionally, Simon is a senior lecturer for The London Institute of Banking and Finance, an active trainer and consultant on risk management, credit risk, credit portfolio management, debt restructuring and sovereign risk subjects. His style of teaching is known for his direct speaking on financial subjects and the impact it has on risk perceptions. In particular, he forewarned of the financial crisis some two years before it happened. He has undertaken research and written articles for various publications including Financier Worldwide, International Finance and the Turnaround Management Association and written material for a Masters level Derivatives and Risk Management programme for the Open University. Simon holds a Masters of Business Administration, obtained post graduate qualifications in banking and finance and is a Fellow of the Chartered Institute of Bankers. He also holds a postgraduate certificate in higher education.

Fees and registration 

  • Members  £890
  • Non-Members  £980
Registration fee includes all learning materials, lunch and refreshments. 

For further information please contact our events team on +44 (0) 20 7337 6286 or events@libf.ac.uk

Register online

This programme is also available for in-house delivery. If you have five or more delegates who wish to attend this course, it may be more cost effective to run it in-house. To find out more about in-house training, please contact Neringa  Stankeviciute on +44 (0) 207 337 6281. 

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