Distressed Financing Modelling

Course description

We offer a unique opportunity to complete this programme online via a virtual class. The programme is delivered by a senior City expert with over 20 years of practical experience.  

You will have a chance to work on real life case studies and practice Excel modelling skills. On completion you will receive a set of course materials and course certificate. 

Please contact us to discuss your requirements if you want to arrange this session on in-company basis.

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In the current market environment many companies are going through financial distress and are unable to meet their obligations. They, or potential buyers may consider various options from raising capital, selling assets or restructuring debt to the liquidation.

Conducting valuation of a distressed company and assessing various financial options poses specific challenges. This practical, computer based, 1 day course conducted by a senior City expert, focuses on the analysis of companies that have become distressed and will equip you with the skills and strategies for distressed financing modelling.

Through a mix of lecture and case studies you will learn to achieve a detailed understanding of distressed companies, including:

  • Reviewing the capital structures and model different alternatives
  • Understanding a liquidation value based on contractual and structural debt subordination
  • Grasping a debt restructuring valuation including modelling debt forgiveness, debt-to-equity swap and cash flow affordability of the restructured operational business
  • Modelling the various options for the debt holders and creditors of a distressed company

What will you learn

By the end of this course you will be able to: 

  • Understand the differences between a stressed and distressed company
  • Analyse capital structure and financing options
  • Conduct the valuation of a distressed company
  • Explore strategic options from capital rising to debt restructuring and liquidation
  • Model various options for the debt holders and creditors to decide the order of debt repayment in a liquidation

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Register for any 2 courses at the same time and save extra £100 (in total, not per course) 


Main topics covered during this training

  • Analysing from stressed to distressed scenarios
  • Contractual and structural subordination
  • Strategic options for distressed companies from raising capital to debt restructuring and liquidation
  • Modelling and valuation for distressed companies
  • Valuation of companies under different options
  • Assessing liquidation value
  • Debt capacity and cash flow repayment capabilities
  • Modeling Liquidation
  • Modelling of the debt under restructuring scenarios
  • Debt capacity and cash flow repayment capabilities
  • Debt-equity swaps

Who should attend

From investment banks, private equity and investment firms:

  • Financial analysts and associates
  • M&A Professionals
  • Distressed debt investors
  • Finance and legal professionals involved in restructuring

Distressed Financing Modelling - A 1 Day Course

Introduction to Distressed Companies

  • From stressed to distressed scenarios
  • Where is the debt in a multinational, contractual and structural subordination?
  • Contractual subordination
    – Senior, subordinated and preferred equity
    – Secured vs. unsecured
  • Structural subordination
    – Borrowing entity
    – Maturity
    – Upstream and downstream guarantees

Strategic Options for Distressed Companies

  • Raising capital
  • Asset sales
  • Sell the business
  • Debt restructuring (out-of-courts)
  • Debt restructuring (in-court)
  • Liquidation

Modeling & Valuation for Distressed Companies


  • Valuation of companies under different options
    – Going concern, liquidation and restructuring
  • Liquidation value
    – Recovery rate
  • Going concern
    – EBITDA multiples
  • Restructuring
    – Debt capacity and cash flow repayment capabilities
    – Debt forgiveness
    – Payment extensions
    – Debt-equity swaps

Modeling Liquidation


  • Balance sheet insolvency vs. cash flow insolvency
  • Asset liquidation value usually estimated as a % of book value
    – Most liquid assets (cash and marketable securities): 100% recovery rate
    – For most assets only a fraction of book value recoverable
    – Liquidation fees
  • Payment of net assets liquidation based on contractual and structural subordination

Case Study: Participants allocate the recovery value previously calculated based on different subordination scenarios: contractual (senior/subordinated), contractual with secured (including the pro-rata allocation between senior residual and senior unsecured), structural (parent/subsidiary) and structural with guarantees.

Modelling Debt Restructuring


  • Modelling of the debt under restructuring scenarios
    – Debt capacity and cash flow repayment capabilities
    – Debt forgiveness
    – Payment extensions
    – Debt-equity swaps

Case study: Detailed modelling and valuation of a European manufacturer which went through the UK’s Company Voluntary Agreement (CVA) scheme. The participants will compare different valuation and their implications for different debt holders including liquidation, a sale on a going concern basis and a debt restructuring analysis including debt forgiveness, RCF, mezzanine and debt-to-equity swap.

 

Trainer

The Course Director is an experienced Corporate Finance professional with over 20 years’ experience in M&A and capital market transactions. He has successfully completed in excess of EUR 30 billion across multiple geographies (US, Europe, MENA).He began his career as a Credit Analyst at Banque Continentale in Luxembourg, before moving to the Investment Banking division at Citigroup (ex-Salomon Smith Barney) in London and New York where he worked on variety of M&A, LBO and debt offerings, mainly for financial services clients. He became Vice-President in the internal M&A department of Barclays Bank in London before moving on to a Directorship role at the Investment Banking division of Commercial International Bank (CIB), Egypt. Whilst there, he successfully completed several transactions including two sell-side M&A, one follow-on equity offering and a delisting. He worked extensively with leading sovereign wealth funds, private equity firms and prominent families in the Middle East.

The Facilitator has an MBA from the Kellogg School of Management in Chicago and a Bachelor of Science from the International Management Institute of Paris.

 

FAQ

We offer banking and finance courses as well as soft skills and business management training. You can either attend an open public course in London or Dubai or arrange customised in-house training to be delivered in any of your offices worldwide.

Most of our public courses are run over 2 full days. Some programmes are offered as a 1 or 3 day training.

In-house training is tailored to client’s requirements and can be organised over 1 day, 2-3 weeks or longer.

Public courses are organised mainly in London and Dubai. Occasionally we organise courses in other centres like Paris or New York. Check our public course calendar for the current list of programmes. We use a range of training venues, all in the centre of the cities and with excellent transport links to the airports and train stations.

In London we use venues in the centre (near Oxford Circus station or in Mayfair) or in the City (near Liverpool Street or Moorgate stations).

In Dubai our courses are organised in one of 4-5* hotels in the Deira district. Once you register we will send you detailed information together with accommodation options if required.

Our in-house courses can be delivered anywhere in the world. We work with over 25 trainers worldwide. Contact us do discuss your requirements. Check our list of available programmes.

Our courses are run in central locations from 9 a.m until 5-5.30 p.m. There are 2 coffee breaks and a lunch break. Lunch is always provided in the venue.

Dress code is smart casual.

All our programmes are taught by senior specialists who have spent many years in their respective sectors, working as senior managers and head of departments, so they understand very well the market and the challenges you are facing.

The experience of our trainers allows us to create very practical programmes, focused on current market trends and challenges. You can be sure that you will gain the knowledge which can be instantly applied in your workplace after the course. You will be analysing real life case studies, take part in group exercises and discussions as well as role plays, whenever applicable.

We want our courses to be as practical and interactive as possible so we limit the number of participants in order to optimise your time with the trainer and allow you to ask questions which are important for you.

In order to understand your requirements and expectations, we will send you a pre-course questionnaire.

You will also receive post-course support so if you have any questions after you left the training, you are welcome to contact us.

There are 2 easy ways to register:

  1. Go to the course of your choice and click Register Now button to fill the registration page
  2. Email us to enquiry@eurekafinancial.com

After you register, we will send you registration confirmation and an invoice so you can arrange the payment. Please note that your place is not confirmed until we receive it.

If you register within Early Bird discount period, there’s limited time to arrange the payment in order to be eligible for the discount. You will find all the details on the invoice.

We don’t advise to make any travel and hotel arrangements until you receive full course confirmation from us.

We will send you venue and course details as soon as possible but most likely about 3-4 weeks prior to the course commencement.

You can pay by:

  • Making a bank transfer
  • Debit/credit card
  • Cheque payable to Eureka Financial Ltd. - only within UK

Just mark preferred paying option on the registration form. Whichever form of payment you choose we will always send you an invoice.

If you pay by card, a 2.2% processing fee will be added. We will send you authorisation form so you can give us your card details.

Included in the price of a public course are:

  • Course tutorial
  • Take away course materials
  • Course Certificate
  • Lunch on the days of the training as well as drinks and snacks throughout the course

The price doesn’t include accommodation, flights, transfers and any additional costs outside of the training venue.

Yes, we always offer Early Bird discount, so the sooner you register the more savings you can make. We also offer group discounts and if you register for 2 or more programmes at the same time.

If you are a full time student or unemployed, we offer a 25% discount of the full price of the training. Student ID or unemployment status confirmation is required to claim this discount.

If you attend one of our courses you will be entitled to a special discount for a year after the last course you attend with us. Also, if you have attended and recommended us to a friend, both you and your friend will receive a special discount. You will receive more information about it after you attend the course.

See our Customer Loyalty Discounts page for more details.

All our courses based in the UK are subject to the VAT charge of 20%. This fee is irrespective of the country of residence of the delegates.

You can, however, claim the VAT back by contacting UK tax office - HMRC, and filling the relevant form, as long as you comply with the following rules:

For Delegates coming from the EU countries

If you represent a registered business in another EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the UK
  • You don't make any supplies in the UK

You can find some more information here. In order to claim the VAT you have to fill Form 65.

For the Delegates from Non EU countries

If you represent a registered business in a non-EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the EU
  • You can only use the Refund Scheme if your own country operates a similar scheme and makes it available to UK businesses. If your country has its own Refund Scheme but doesn't let UK businesses use it, you can't claim under the UK Refund Scheme.
  • You don't make any supplies in the UK

If the following rules apply to you, please fill the 65A form and send it to HMRC.

Webinars

You can cancel your participation up to a month before the course and receive a refund minus 10% of the full course value. Between 2-4 weeks before the course you will be charged 50% cancellation fee and if you cancel less than 2 weeks before the course you can only offer your place to a colleague. Up to 2 weeks before the course you can reregister for another edition for 10% reregistration fee if there is another webinar offered or you can rebook for a course in London by paying the difference in price plus 10% reregistration fee.

Classroom Courses

If there is any official travel restriction or difficulty related to the COVID pandemic around the time of the course we will convert the training into a webinar or offer to attend the next classroom edition at no extra cost.

If you are unable to attend the course, you can either send a replacement at no extra charge or, up to 10 days before the training, you can transfer your booking to another edition within the next 6 months paying administrative fee of 20% of the full course price. For any cancellation requests received between 11 days and 4 weeks from the course we offer 50% refund or reregistration to another edition for 25% of the value of the booking. For any cancellation requests received more than 4 weeks before the course date we will offer a refund less an administration fee of 10% of the full course price.

Cancellations must be made in writing (letter or email) and reach our office four weeks prior to the course date. We regret that only limited refunds can be given after this period as per points above. Non-attendance without any notification will be charged at full rate. Your place on a course is not guaranteed until we receive the payment. All payments must be made in full before the course date.

All our trainers have been working for many years in their respective sectors before they begun to teach so they bring a wealth of practical experience to the classroom.

Most of them used to work for 15 or more years in the financial sector and corporate world, and were holding positions of Directors, VP and Senior Managers. Some of them have published books and have written articles for specialised magazines and newspapers including FT, The Independent, The Times etc. You can find detailed biography of each trainer on the page of the course you want to register for.

Yes, you will receive a Certificate of Attendance at the end of the course you attend.

If you have to apply for a Visa to attend a course in the UK, we will issue a letter to support your application. The letter will be issued only after the payment for the course has been made.

It is delegate’s responsibility to obtain a Visa and failure to do so will not make the participant exempt from the cancellation policy.

Anyone suspected of applying for a training course simply to gain a Visa letter will be reported to their embassy.

We will need the following information to issue an invitation letter:

  • Full name as it appears on your passport
  • Date of birth
  • Passport number
  • Passport issue date
  • Passport expiry date

This topic can be arranged on in-company basis. If you have a group of 4 or more we can customise it and deliver in any location worldwide. Contact us to discuss your requirements

WHAT PAST DELEGATES SAY

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