Distressed Securities

The Distressed Securities Seminar is designed to give attendees an in-depth knowledge of these problematic securities. The amount of these type of instruments has grown tremendously in the past three years and this growth has caused a great increase in the complexity in dealing properly with these investments. This seminar will help the attendee gain a thorough understanding of how these instruments were structured, why they are behaving the way they are and the accounting and systems concerns which pertain to them.

The Distressed Securities Seminar will focus on all issues related to the holding of a position of this type, including the analysis of current financial statements, brokerage reports, and press releases. There will be discussion and exercises relative to evaluating distressed debt, quarterly financial projections and liquidation values in the event of bankruptcy. There will be a focus on the strengths and weaknesses and recommendations on the valuations of distressed debt. Besides a simple focus on definitions and exercises, this session was developed to provide participants with a framework and methodology for evaluating a specific risk and for applying this framework and methodology to a current distressed debt issue.

The Distressed Securities Seminar is ideal for anyone who needs to gain a comprehensive knowledge of this critical and timely topic, such as accountants, auditors, IT professionals and senior managers. Attendees will gain the critical skills necessary for the evaluation and management of these holdings.

• Types of Distressed Securities
• Fixed income securities
• Bank debt
• Unfunded commitments (bank lines of credit)
• Secured claims (mortgages, equipment)
• Debtor in Possession (DIP)
• Trade claims
• Restructured equity
• Restructuring/Work Out Progress
• In court (chapter 11 or 7 bankruptcy)
• Out of court restructuring
• Strict policy and value leakage
• Original holders vs. acquired in the secondary market
• Trading of Distressed Securities
• Secondary market for distressed claims
• Publicly traded securities
• Private instruments and 144a
• When issued market
• Restrictions on transfer
• Skill Discussions Relative to Distressed Positions
• Understand systemic techniques for approaching distressed debt credit risk judgment and for focusing on the key credit issues
• Evaluate a company's overall business risk including its industry risk, competitive position and management
• Evaluate a company's overall financial risk, including adjustments to its financial ratios and its financial policy, profitability, leverage, cash flow and financial flexibility
• Evaluate loan agreements and the strength of creditors in controlling management and cash flow
• Use a proprietary model, make and evaluate financial projections for assessing avoidance of bankruptcy
• Evaluate loss given default, taking into account covenants, collateral, structural and contractual seniority, enterprise value and liquidation value
• Documentation Reviews
• 10K's and 10Q's
• Loan agreements
• Management presentations
• Brokerage reports
• Press releases