Debt Restructuring https://store.theartofservice.com/the-debt-restructuring-toolkit.html - PowerPoint Presentation

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Debt Restructuring

https://store.theartofservice.com/the-debt-restructuring-toolkit.html

Bankruptcy - Modern law and debt restructuring

The principal focus of modern insolvency legislation and business debt restructuring practices no longer rests on the elimination of insolvent entities but on the remodelling of the financial and organisational structure of debtors experiencing financial distress so as to permit the rehabilitation and continuation of their business.

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Insolvency - Debt restructuring

Debt restructurings are typically handled by professional insolvency and restructuring practitioners, and are usually less expensive and a preferable alternative to bankruptcy.

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Insolvency - Debt restructuring

Debt restructuring is a process that allows a private or public company - or a sovereign entity - facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its operations.

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Debt restructuring

'Debt restructuring' is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its operations.

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Debt restructuring - Motivation

A debt restructuring is usually less expensive and a preferable alternative to bankruptcy. The main costs associated with a business debt restructuring are the time and effort to negotiate with bankers, creditors, vendors and tax authorities. Debt restructurings typically involve a reduction of debt and an extension of payment terms.

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Debt restructuring - Motivation

In the United States, small business bankruptcy filings cost at least $50,000 in legal and court fees, and filing costs in excess of $100,000 are common. By some measures, only 20% of firms survive Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy filings.Buljevich, Esteban C.,Cross Border Debt Restructuring: Innovative Approaches for Creditors, Corporate and Sovereigns ISBN 1-84374-194-6

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Debt restructuring - Motivation

Like debt restructuring debt mediation is a business to business activity and should not be confused with or considered in the same manner as the more blurry world of individual debt reduction involving credit cards, unpaid taxes and defaulted mortgages.

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Debt restructuring - Motivation

While there are numerous companies providing restructuring for large corporations, there are few legitimate firms working for the small business community. Legitimate debt restructuring firms only work for the debtor client (not as a debt collection agency) and should charge fees based on success.

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Debt restructuring - Switzerland

Under Switzerland|Swiss law, debt restructuring may occur out of court, or through a court-mediated debt restructuring agreement that may provide for a partial waiver of debts, or for a liquidation of the debtor's assets by the creditors.

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Debt restructuring - United Kingdom

The majority of debt restructuring within the United Kingdom, certainly in the commercial sector, is undertaken on a collaborative basis between the borrower and the creditors. Should this be unsatisfactory in the first instance, the court may be asked to mediate and administrators appointed.

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Debt restructuring - Italy

Debt restructuring within Italy may occur either out of court (ex article 67 of the Italian Bankruptcy Law) when a waiver or simple debt rescheduling is required, or through a court-mediated debt restructuring agreement (ex article 182/bis of the Italian Bankruptcy Law) and may provide for a partial waiver of debts, mandatory recapitalization of the debtor, or for a liquidation of certain debtor's assets to repay privileged creditors.

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Argentine debt restructuring

A second debt restructuring in 2010 brought the percentage of bonds out of default to 93%, though ongoing disputes with holdout problem|holdouts remained

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Argentine debt restructuring

Proposed solutions include seeking waivers of the RUFO clause from bondholders, or waiting for the RUFO clause to expire at the end of 2014. The dilemma raised concerns internationally about the ability of a small minority to forestall an otherwise-agreed debt restructuring of an insolvent country, and the ruling that led to it was widely criticized both within the United States and internationally.

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Argentine debt restructuring - Argentine financial crisis

Large-scale debt restructuring was needed urgently, since the high-interest bonds had become unpayable

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Argentine debt restructuring - Holdout problem

A third debt restructuring offer to remaining holdouts on similar terms to the 2010 swap was announced on August 27, 2013

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Argentine debt restructuring - First restructuring (2005)

In January 2005, the Argentine Government offered the first debt restructuring to affected bondholders; nearly 76% of the defaulted bonds (USD62.5 billion) were thus exchanged and brought out of default

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Argentine debt restructuring - IMF Repayment

Nobel Economics Prize laureate Joseph Stiglitz repeatedly criticized the IMF and supported the Argentine strategies on the debt restructuring, but opposed the disindebtment policy, suggesting instead that the IMF should receive the same treatment as the other creditors

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Lanco Infratech - Debt Restructuring

By July 2013, the company had filed for debt restructuring, citing a business slowdown.

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Lanco Infratech - Debt Restructuring

[http://www.livemint.com/2007/10/17000537/Lanco-seeks-additional-coal-fo.html Lanco seeks additional coal for Anpara C power project in UP - Livemint] the company ran into financial trouble and has filed for Corporate Debt restructuring in

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Argentine economic crisis (1999–2002) - Debt restructuring

The government reached an agreement in 2005 by which 76% of the defaulted bonds were exchanged for others, with a nominal value of 25–35% of the original and at longer terms. A second debt restructuring in 2010 brought the percentage of bonds out of default to 93%, though holdout problem|holdout lawsuits led by vulture funds remained ongoing. Foreign currency denominated debt thus fell as a percentage of GDFP from 150% in 2003 to 8.3% in 2013.

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