Overview
Distressed debt recovery and corporate turnround
The unfolding shocks in the world economy have defined a new risk environment for financial institutions. Banks, regulators and investors may soon need to tackle a new wave of distressed debt and non-performing loans (NPLs).
With the Certified Expert in Distressed Debt Recovery you will be equipped with key skills to manage loan defaults. You will learn to recognise debt distress among households and enterprises and to design best-practice restructuring solutions that recover loans, and return borrowers to financial health.
A core part of the course will deal with hands-on restructuring techniques, which will be simulated through a number of numerical exercises and case studies. To provide context for restructuring techniques we will cover best-practices in bank-internal workout units, and recent trends in regulation, supervision and insolvency law. We study real-life restructuring situations from Europe and emerging markets, also in case studies of corporate turnarounds.
Investment in NPL portfolios and distressed debt will be covered, as this present new opportunities in both regions. The economics of private sector debt distress and policies used to address such debt crises, will round off our programme.
Target Audience
Bank management and staff, financial supervisors, and investors who are working on developing a strategy for managing distressed loans and NPLs. All who need to develop a comprehensive understanding of recent regulations, and the institutions and legal context that will govern NPL management and debt restructuring. Consultants and other insolvency professionals will also benefit, as on the basis of this course they will command the strategic and regulatory framework that promotes the resolution of private sector debt distress.
Workload
The course takes approx. 6 months assuming 5-6 hours of self-study per week. It consists of 10 units which build upon each other. You will take the units in sequence and will need to pass an online multiple choice test before accessing the next unit.
You are not sure if you manage to complete the course within 6 months? No worries! You can apply for a course extension (6 more months) against an administrative fee.
Registration
Registrations for the course beginning on 1 September 2023 are now open.
Awarding Boby
The certification is awarded by Frankfurt School of Finance and Management,Germany.
Learning Outcomes
At the end of the course you will be fluent in engaging with supervisors, other insolvency professionals and with investors in complex distressed situations. You will be in a position to negotiate in a creditor committee, or to navigate the court system in an insolvency. These will be key skills for your organisation in the coming years.
Course Outline
- 1.1: Course plan and objectives
- 1.2: Course organisation and logistics
- 1.3: Private debt and NPLs as multiple crises evolve
- 1.4: The context for NPL restructuring
- 2.1: Overview
- 2.2: Arrears, default, and the NPL life cycle
- 2.3: Corporate debt distress: setting up an early warning system
- 2.4: Recognizing household over-indebtedness
- 2.5: State-sponsored borrower relief measures
- 3.1: Overview
- 3.2: Why bank asset quality definitions vary so widely
- 3.3: Reporting problem loans
- 3.4: Standards in the EU
- 3.5: The accounting framework: IFRS and expected credit losses
- 3.6: ntegrating three perspectives on bad loans and flexibility in a recession
- 4.1: Overview
- 4.2: Why supervisors care: high NPL banks are weak banks
- 4.3: The response from supervisors: NPL guidelines from the ECB and European Banking Authority
- 4.4: Best practice: the ECB guidance to banks on non-performing loans
- 4.5: Conclusions: is the bank ready?
- 5.1: Descriptive portfolio statistics to track arrears
- 5.2: Household loan restructuring and arrears management
- 5.3: The bank's rights in a personal insolvency
- 5.4: Mortgage restructuring and borrower protection
- 5.5: Arrears management and responsible collections
- 5.6: Efficient and targeted arrears management
- 6.1: Overview
- 6.2: Past debt crises in Asia and Europe
- 6.3: Lessons from past crises
- 6.4: Asset management companies
- 6.5: Rules for state aid to banks
- 6.6: Asset transfers and bank resolution
- 7.1: Overview
- 7.2: How the insolvency regime shapes creditor rights
- 7.3: Elements of effective insolvency regimes
- 7.4: Assessing insolvency regimes in practice
- 7.5: Pre-insolvency restructuring in Europe
- 8.1: Overview
- 8.2: The path to the out-of-court workout
- 8.3: Organising multi-creditor workouts
- 8.4: The restructuring plan
- 8.5: Deciding between alternative options
- 8.6: Case studies
- 9.1: Overview
- 9.2: Loan sales in the workout strategy
- 9.3: The valuation of a distressed loan portfolio for sale
- 9.4: The secondary loans markets in Europe and emerging markets
- 9.5: The regulation of loan transfers and external servicing
- 9.6: The distressed asset transfer process
- 9.7: NPL securitisations
