Day One
Introduction
Defining Distressed Debt
Distressed Debt market background – size, participants, historic returns
Causes of, and early warning signals for, distress and implications for possible restructuring solutions
Basics
Business assessment – products, competition, customers, company
Financial assessment – financial statement analysis including key cash flow template; forward-looking financial modelling; key credit metrics; covenant compliance testing; liquidity analysis and debt service capacity
Potential EBITDA – developing a turnaround strategy
Business valuation – DCF, comparable multiples
Instrument assessment – covenant, seniority, security and guarantor protection. Identification of available options for sponsor to expropriate value from creditors
Strategic flexibility – scope for asset sales (including sale and leaseback transactions), secured financing, refinancing prospects and new sponsor equity
Case Study 1 – Cerba (European clinical lab testing business). Analysis of: group structure and capital structure; security; covenants and carve-outs; guarantees. Deep dive business analysis including of comparables; financial statement analysis; full forward-looking financial model and valuation across base, bear and bull scenarios
Case Study 2 – Cerba. Hypothetical restructuring analysis and recovery estimates. France accelerated safeguard. English scheme of arrangement in respect of term loans, RCF and intercreditor agreement. Chapter 15 filing in US to recognise France accelerated safeguard in respect of Cerba Senior Secured Notes (SSNs) and Senior Unsecured Notes (SUNs) governed under New York law
Debt Restructuring & Key Restructuring Processes Used
Out-of-court vs in-court restructurings
Increasing trend towards liability management exercises (LMEs) in Europe
Uptiering and dropdown transactions
Estimating sustainable debt level
Estimating new money needs
English schemes of arrangement, Part 26A Restructuring Plans and Company Voluntary Arrangements
France – mandat ad hoc, conciliation, safeguard, accelerated safeguard and judicial reorganisation
US – Chapter 11 and Chapter 15
Cross border debt restructurings. Centre of Main Interest (COMI) and cross border recognition of insolvency proceedings in other countries. Why processes in multiple jurisdictions are often necessary
Case Study 3 – Ardagh Group (glass and metal can packaging manufacturer) – 2025 restructuring via LME
Case Studies. Deep dive analysis for each case study in respect of business, financial, instruments, valuation and restructuring process
Case Study 4 – Altice France (fixed line, mobile, broadband, pay TV provider) – 2025 restructuring via accelerated safeguard
Case Study 5 – Intrum (debt servicer and purchaser) – 2024-25 restructuring via US Chapter 11 and Swedish reorganisation
Case Study 6 – Thames Water (water utility) – 2025 creditor solution
Case Study 7 – Altice International (fixed line, mobile, broadband, pay TV provider across Portugal, Israel and Dominican Republic) – 2025 designation of Portuguese and Dominican Republic entities as unrestricted subsidiaries and economically higher ranking debt issuance at Portuguese entity
Case Study 8 – Lowell (debt purchaser and servicer of consumer unsecured NPLs, primarily in UK, Nordic region and Germany). 2025 liability management exercise
Case Study 9 – Selecta (vending machines). 2025 Dutch-court-approved enforcement process
Case Study 10 – Modulaire (modular building solutions). Assessing risk-reward in Modulaire’s Senior Unsecured Notes
Case Study 11 – TalkTalk (UK fibre optic broadband provider). How will it deal with its approaching debt maturity wall? Assessing M&A potential
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