Stressed Asset Resolution - post COVID


Stressed Asset Resolution - Post COVID

Objectives

·        To understand financial distress / stressed loan

·        To identify financial and non-financial parameters which confirm financial distress and identify incipient financial distress

·        To decide on potential for resolution of stressed asset and alternative credit recovery steps

·        To adopt bottom-up approach to analyse the impact of covid-19 slowdown on various sectors and accounts and take advance corrective action

·        Understand debt /equity / asset restructuring for stressed asset resolution and monitoring and use financial modelling with MS-Excel for the same.

·        Decide on credit recovery steps from unviable accounts

Course content

·        Overview of stressed asset scenario in MSME, mid-corporate and large-scale sectors including infrastructure sectors / projects.

·        Financial distress / stressed loan account (with the help of one or more case studies)

·        Impact of covid-19 lockdown on operations and financial position of borrowers and determining restructuring needs

·        Financial / Equity / Asset restructuring (with the help of one or more case studies)

·        RBI’s restructuring guidelines for MSME and other borrowers

·        Features of RBI’s erstwhile restructuring schemes such as CDR, 25%/50%, 5/25 structure, SDR and S4A, and reasons for failure of these schemes (with the help of one or more case studies)

·        Identification of diagnostic parameters of financial distress and adoption of preventive and curative remedies (with the help of one or more case studies)

·        Effective use of schemes of Credit Guarantee Trust for Medium and Small Enterprises and Emergency Credit Line Guarantee Scheme (with the help of one or more case studies)

·        Effective use of MS-Excel for bottom-up financial modelling and continuous monitoring

·        Role of Distressed Assets Funds

·        Legal steps for recovery

⁃        RDDBFI Act

⁃        SARFAESI Act

⁃        Insolvency and Bankruptcy Code, 2016

⁃        Optimum use of these legislations

⁃        Sale to ARC

⁃        Examples