1 / 11

Trends and Insights from the 2013 Corporate Restructuring Summit

The 2013 Corporate Restructuring Summit, led by Tom Kavanagh of Kavanagh Fennell, outlined significant trends and developments in the restructuring landscape. Key topics included large property sales, debt restructuring challenges from both borrower and bank perspectives, and personal insolvency issues facing borrowers. Notable statistics indicated a year-on-year decrease in asset sales. The summit also provided an outlook for the next 12 months, highlighting a predicted increase in portfolio sales and fixed asset enforcement activities.

lok
Télécharger la présentation

Trends and Insights from the 2013 Corporate Restructuring Summit

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CORPORATE RESTRUCTURING SUMMIT Tom Kavanagh kavanaghfennell 25th September 2013

  2. Contents • Trends & Developments • Large Property Sales • IBRC • Debt Restructuring • Personal Insolvency • Outlook for the next 12 months

  3. www.insolvencyjournal.ie Year on year decrease of 20% Year on year decrease of 14% Predicted 2013 total: 1,300+ 2012 overall total: 1,684 *statistics do not include personal asset receivership

  4. Trends & Developments • Receiverships – Differing strategies • Examinership – B&Q, Pamela Scott, Sunday Business Post, Barna Waste • IBRC Liquidation • Portfolio Sales – Aspen, River, IBRC, Ulysses, Arc, O’Flynn • Servicing Contracts – Certus, Capita, Pepper • PE firms, REITs + QIFs • Spike in Fixed Asset enforcement • Charles Allen ‘Trust’

  5. Large Property Sales • Treasury Portfolio - €306m • Clancy Quay- €82m • Vet College- €22m • Gemini Portfolio- €65m • Bishops Square- €65m • River Island Building - €40m • La Touche House- €35m • 4 Apartment Blocks- Capreit - €42m • Marker, Ritz Carlton, Burlington , Trinity Plaza

  6. IBRC • Debtor purchase, PE firms or NAMA • Valuation is the key • Debtors – No certainty on banking counterparty • Further uncertainty for trading businesses • INBS book - NAMA?

  7. Debt Restructuring Borrower Perspective • Private Equity • Exiting Banks • Pillar Banks • Loan Service Providers • Debt Collection Agencies Bank’s Perspective • Long-term market participants • Capital Efficiency • Restructure is easier on balance sheet • Future interest income

  8. Debt Restructuring The Return of Capital • Dublin awash with hungry money • Provides Banks with option of taking market • Exiting Banks / Bad Bank run offs / NAMA • Vendor appetite for portfolio sales Models • Senior Debt profile structured around free cashflow • Residual debt: • Stretch and forgive, equity fee notes, zero coupon parking • Margin debate (higher senior debt v interest rate return) • i.e. €5m @ 4% margin = €5.73m @ 2%

  9. Debt Restructuring Issues and Obstacles • Family Homes • Documentation and Fulfilment • Provisioning inadequacy • Borrower fatigue • Contagion fear

  10. Personal Insolvency • Insolvency Service of Ireland • Formal Arrangements - Banks not favourable? • Borrowers left with Hobson’s choice • Consensual restructuring or Bankruptcy • Exception – multi banked borrowers

  11. Outlook For Next 12 Months • Higher volume of asset sales • Portfolio Sales to pick up • IBRC outcome • Restructuring – real progress • Surge in Fixed Asset enforcement • Examinership ‘Light’ • Personal Insolvency – fall out • Sentiment – inching forward

More Related