Project Example – Financial Restructuring
||Preparing a corporate level strategy to restructure the debt and assets of an investment company (balance sheet restructuring)
||Kuwaiti investment company
||Leasing, finance and investment
- Debt obligations size for restructuring: ~USD 125 million (contractual debt) and ~USD 50 million (other obligations)
- Assets size for restructuring: ~USD 265 million (mostly real estate investment properties)
|Assignment Date & Duration
||2012, 3 months
|Main Area of Focus
||Restructure company’s indebtedness (local debts) and investments with the aim of primarily: i) restructuring paying-out its defaulted financial obligations in full, ii) restructuring its assets-base, and iii) avoiding liquidation (or bankruptcy). The objective is to keep the company operating on an ongoing basis and restoring its profitability with an ultimate goal of protecting shareholders’ wealth.
- Review, analyze and assess the company’s financial position and assess its liquidity base and solvency position.
- Identify and assist in determining the fair value of the assets to be used in the debt restructuring plan and especially those to be collateralized.
- Review the existing strategy and assist in developing a realistic strategic plan to serve the company’s goals and guide it in its corporate debt restructuring plan.
o Assist in setting strategies to ensure the settlement and closing of debt claims from all creditors and other related parties claims while preserving and protecting shareholders wealth.
o Assess and propose a debt restructuring plan and prepare debt restructuring schedules accordingly.
o Assess and estimate future cash flows under the context of a corporate debt restructuring plan.
- Propose an out-of-court Corporate Debt Restructuring (CDR) plan with alternative scenarios to be presented to creditors.
- Assist the client in negotiations with creditors, especially the most senior creditors (in terms of size of outstanding debt and collateral) in order to reach an understanding on a CDR plan scenario acceptable to all stakeholders prior to resorting to protection under Kuwait’s Financial Stability Law (“FSL”) No. 2 of 2009.
||The company received approval to enter under FSL Law based on the CDR plan developed by AlShall