Reprise-The Five Phases of Restructuring

Richard Marney () and Timothy Stubbs ()

Chapter Chapter 1 in Emerging Markets Debt Restructuring, 2024, pp 3-11 from Springer

Abstract: Abstract This chapter reviews the key themes from Volume I—Corporate Debt Restructuring in the Emerging Markets: A Practical Post-Pandemic Guide (Palgrave Macmillan 2021). A workout is always a bespoke transaction. It unfolds against the background of its own factual circumstances. In an emerging market, these facts will be driven by the unique macroeconomic, political, and business/cultural nature of the given market. Human emotions will usually play a greater role in debt restructurings than in (most) other financial service transactional areas. The characteristics of the emerging markets create the potential for higher losses which drive behavioral patterns that complicate the restructuring process. The restructuring specialist must therefore develop superior (if not super-human) communication, persuasion, organizational, and process skills. Based on work in prior restructurings, the process is broken down into five identifiable main phases and this gives the restructuring specialist an excellent framework for understanding and managing the complexities of an emerging markets workout. These are: (1) Pre-Restructuring; (2) Restructuring Decision; (3) Case Setup; (4) Structuring and Negotiation; and (5) Implementation. The antecedents, objectives, and challenges of each of these five are discussed in turn.

Keywords: Emerging markets; Restructuring; Phases; INSOL II; Endowment effect; Restructuring specialist; Borrower; Lender; Credit structure; Monitoring; Risk mitigation; Credit evaluation; Credit checks; Loan losses; Provisions; Recoveries; Negotiation; Steering committee; Workout plan; Standstill agreement; Steering committee; Term sheet; Financial due diligence; Modeling; Cost–benefit analysis; Insolvency; Bankruptcy; Debt sustainability; Preservation of value; Transaction leadership (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-66838-8_1

Ordering information: This item can be ordered from
http://www.springer.com/9783031668388

DOI: 10.1007/978-3-031-66838-8_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().