Introduction

Insolvency and restructuring are critical areas of finance that focus on helping companies in financial distress manage their obligations, reorganize, and recover. This 5-day training course is designed to provide participants with a comprehensive understanding of insolvency laws, restructuring strategies, and the financial tools required to manage distressed businesses. Participants will learn the legal, financial, and operational aspects of insolvency, and how to navigate complex restructuring processes in both corporate and personal settings.

Course Objectives

• Understand the fundamentals of insolvency and the legal framework for bankruptcy and restructuring.
• Learn how to assess the financial health of distressed companies and develop effective restructuring strategies.
• Gain insights into the roles and responsibilities of key stakeholders in an insolvency or restructuring process (e.g., creditors, debtors, legal advisors).
• Understand the different types of restructuring and insolvency processes: out-of-court workouts, voluntary arrangements, and formal bankruptcy procedures.
• Learn how to negotiate and implement restructuring plans, including debt-equity swaps, debt-forgiveness, and business turnarounds.
• Explore case studies and real-world examples of successful and failed restructuring processes.

Who Should Attend?

• Insolvency practitioners, bankruptcy advisors, and financial analysts.
• Corporate executives, managers, and CFOs of distressed companies.
• Legal professionals and consultants working in insolvency and restructuring.
• Bankers and investors involved in distressed asset management and credit risk analysis.
• Students and professionals interested in corporate finance, restructuring, and insolvency.

Day 1: Introduction to Insolvency and Restructuring

• Session 1: What is Insolvency?
  • Definition of insolvency: Legal vs. financial insolvency.
  • Types of insolvency: Corporate insolvency, individual insolvency, and cross-border insolvency.
  • Overview of common causes of insolvency: Poor financial management, external economic shocks, operational inefficiency, and over-leveraging.
• Session 2: Key Players in Insolvency and Restructuring
  • Key stakeholders: Debtors, creditors, insolvency practitioners, court-appointed administrators, and the legal system.
  • Roles and responsibilities of creditors and debtors in the insolvency process.
  • The role of government agencies, regulatory bodies, and courts in insolvency proceedings.
• Session 3: Overview of Restructuring Strategies
  • Definition and objectives of corporate restructuring: Financial, operational, and legal restructuring.
  • Out-of-court restructuring vs. formal court-based procedures (bankruptcy, liquidation).
  • Overview of successful restructuring strategies: Debt restructuring, business model changes, and cost optimization.

Day 2: Insolvency Procedures and Legal Framework

• Session 1: Formal Insolvency Processes
  • Chapter 11 bankruptcy (U.S.) and Administration (U.K.): Key differences and similarities.
  • Liquidation, receivership, and the winding-up process.
  • Overview of insolvency laws in different jurisdictions: International insolvency regulations and their impact on cross-border restructurings.
• Session 2: Legal Rights and Obligations in Insolvency
  • The role of creditors: Secured vs. unsecured creditors, priority of claims, and creditor voting rights.
  • The debtor’s rights and obligations: Protection from creditors, moratorium on lawsuits, and reorganization efforts.
  • Legal protections: Automatic stay, liquidation orders, and judicial oversight.
• Session 3: Cross-Border Insolvency
  • Managing international insolvency cases: Recognition of foreign proceedings, choice of jurisdiction, and conflict of laws.
  • The role of UNCITRAL Model Law on Cross-Border Insolvency.
  • Case studies of successful cross-border restructurings and the challenges involved.

Day 3: Financial Restructuring Techniques

• Session 1: Debt Restructuring
  • Techniques for restructuring debt: Debt-for-equity swaps, debt forgiveness, and extension of debt maturities.
  • The role of creditors in debt restructuring negotiations: The importance of creditor committees and seniority of claims.
  • How to structure debt exchanges and improve the debt service capacity of the company.
• Session 2: Equity and Ownership Restructuring
  • Equity recapitalization: The process of issuing new equity to restructure the capital base.
  • Managing shareholder interests and aligning management incentives with the new ownership structure.
  • How to restructure ownership through mergers, acquisitions, and joint ventures.
• Session 3: Financial Modeling in Restructuring
  • Building financial models for distressed companies: Forecasting cash flows, identifying liquidity shortfalls, and assessing solvency.
  • Sensitivity analysis and stress testing: Evaluating the impact of different restructuring options on financial health.
  • Using financial models to negotiate and structure deals with creditors.

Day 4: Operational Restructuring and Turnaround Strategies

• Session 1: Operational Restructuring
  • Key components of operational restructuring: Cost-cutting, operational efficiency, and workforce reduction.
  • Optimizing supply chains, restructuring debt portfolios, and renegotiating supplier contracts.
  • Case studies: Operational restructuring in industries such as manufacturing, retail, and energy.
• Session 2: Corporate Governance and Management in Restructuring
  • The role of management and boards during the restructuring process.
  • Leadership challenges in a distressed company: Maintaining morale, communicating with stakeholders, and managing the change process.
  • How to align corporate governance with the needs of creditors and other stakeholders.
• Session 3: Turnaround Strategies
  • Building a turnaround plan: Identifying core business activities, market repositioning, and cost reduction.
  • Managing a turnaround: Key success factors and common pitfalls.
  • The role of external advisors (financial, legal, operational) in executing turnaround strategies.

Day 5: Negotiation, Exit Strategies, and Post-Restructuring Considerations

• Session 1: Negotiation Skills in Restructuring
  • Key negotiation tactics for restructuring: Identifying win-win solutions, maintaining good creditor relationships, and managing difficult negotiations.
  • The importance of communication in negotiations: How to address creditor concerns and protect debtor interests.
  • Case studies of successful restructuring negotiations and the outcomes.
• Session 2: Exit Strategies in Restructuring
  • How to define a successful exit in a restructuring process: Asset sales, debt buybacks, and public offerings.
  • Exit strategies for private equity and corporate investors in distressed companies.
  • The role of equity investors and lenders in determining the exit strategy.
• Session 3: Post-Restructuring Considerations and Future Risks
  • Managing post-restructuring performance: Monitoring progress, meeting financial goals, and adjusting strategies.
  • Addressing challenges post-restructuring: Maintaining solvency, growing revenue, and ensuring long-term sustainability.
  • Future risks: Managing market volatility, operational risks, and debt repayment after restructuring.

Course Conclusion

• Recap of Key Learnings
• Interactive Q&A Session
• Certification of Completion