Overview
- Analyzes the five main phases and principles of a restructuring
- Shows how the elements are applied in practice with both banks and corporate borrowers
- Offers a specific look at how the COVID-19 pandemic affects restructuring
Access this book
Tax calculation will be finalised at checkout
Other ways to access
Table of contents (12 chapters)
-
Front Matter
-
Opening Narrative
-
Front Matter
-
-
The Restructuring Process
-
Front Matter
-
-
Acts of God and Other Exogenous Events
-
Front Matter
-
-
Reference Toolkit
-
Front Matter
-
-
Conclusion
-
Front Matter
-
-
Back Matter
Keywords
About this book
Corporate debt restructurings in the emerging markets have always presented special challenges. Today, as the global economy emerges from the COVID-19 pandemic and businesses look to pick up the pieces, this is even more true. For many, the financial hangover of the lockdowns and market disruptions linger and threaten their independence, even their survival. This peril is more acute in the emerging and frontier markets. Weaker economic fundamentals and institutional resiliency often intensify the challenge to return to pre-COVID-19 operating levels and financial sustainability. In this context, borrowers invariably must address the imbalance of substantial existing debt with the “new reality” of their business operations and revenues.
This book, using case studies, presents a full, detailed narrative of a fictitious troubled bank in an emerging market, with characters, dialogues, and negotiations. It also includes a series of discussion questions with suggested answers, to draw out key issues from the case. In doing so, this initial narrative offers a substantive analysis of the five main phases and principles of a restructuring: (1) pre-restructuring, (2) the decision to restructure, (3) the case set-up, (4) structuring and negotiation, and lastly (5) implementation. In each chapter, the book outlines the main elements of the phases and shows how the elements are applied in practice. The book also presents separate chapters on exogenous shocks (with a focus on the COVID-19 pandemic as an example of such shocks), macroeconomics, and legal issues present in cross-border restructurings. It will be of interest to the international professional financial and legal community, primarily junior-to mid-level financiers, business people, and lawyers.
Reviews
“With this book, Richard and Tim have managed to present a detailed look at how corporate debt restructuring really works by weaving together narratives that bring real deal stories to life by placing the reader inside the negotiation rooms. This practical approach gives the reader a better grasp of the competing perspectives, clashing personalities and legal and financial constraints across the main phases of a restructuring, with valuable insights on how to overcome them. This book is a great read and an important contribution to the ongoing debate towards addressing the rising credit default risks in emerging markets, in a post-pandemic world.” (Wale Shonibare, Director, Energy Financial Solutions, Policy & Regulations, Power, Energy, Climate & Green Growth Complex, African Development Bank (AfDB))
“Richard and Tim’s book focuses on principles first and provides a holistic view of tackling distressed situations. Furthermore, it discusses psychological, emotional and other ‘soft’ aspects and stakeholder dynamics—that are perhaps more important at the outset of a case than any technical details. It also usefully touches upon adapting common restructuring principles and approaches to countries with underdeveloped legal regimes and workout culture. Lastly, the book is very well written, talking about serious subjects in a light and entertaining manner, which makes it a useful and exciting reading to anyone who is planning to step into dealing with corporate stress and distress.” (Alexander Erofeev, Chief Special Operations Officer, International Finance Corporation (IFC)) “Richard and Tim center this book around their decades-long experience that restructuring negotiations can be as much about the personal and institutional context of the actors as the financial fundamentals of the case. Past mistakes are a burden for the present. Negotiating positions and decisions are not always rational. Emotions can play a central role. The book highlights the need to understand these factors and manage the process and the people accordingly.” (Martin Heimes, Co-Head Financial Institutions Debt, responsAbility Investments AG)Authors and Affiliations
About the authors
Richard Marney is a senior advisor for risk management at responsAbility Investments AG, a leading Zurich-based development finance focused asset management firm. He previously served as the firm’s chief risk officer. Prior to responsAbility, Richard had a broad and varied 40-year career in emerging and frontier markets banking and principal investing, with senior-level business and corporate development, risk management, and operating roles, including with BNY Mellon and JP Morgan.
Timothy Stubbs is a partner with the global law firm Dentons. He heads the firm’s Russian Banking and Finance Group. Tim has worked on emerging markets transactions with Dentons (and its legacy firm Salans) since 1992, having previously practiced law in Chicago and New York. Tim also worked for two years in the European Bank for Reconstruction and Development (EBRD) in London on working sabbatical. Tim has led numerous debt restructurings and financings of all types, including bilateral and syndicated lending, real estate finance and project finance.
Bibliographic Information
Book Title: Corporate Debt Restructuring in Emerging Markets
Book Subtitle: A Practical Post-Pandemic Guide
Authors: Richard Marney, Timothy Stubbs
DOI: https://doi.org/10.1007/978-3-030-81306-2
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
Hardcover ISBN: 978-3-030-81305-5Published: 03 September 2021
Softcover ISBN: 978-3-030-81308-6Published: 04 September 2022
eBook ISBN: 978-3-030-81306-2Published: 02 September 2021
Edition Number: 1
Number of Pages: XXIII, 422
Number of Illustrations: 1 b/w illustrations, 24 illustrations in colour
Topics: Business Finance, Financial Services, Development Economics