Restructuring and repositioning

We know a thing or two about restructuring and repositioning!

Our specialist in restructuring and repositioning has 7 years of experience as VP Restructuring in a major bank, for which he acted in restructurings around the globe and 20 years of experience in work out situations in different countries.

As a former employee in a bank, he is well familiar with the banks’ internal reporting requirements and bank-internal procedures and is well versed with banks’ internal assessment criteria. As a result, we are able to talk on eye-level to banks and can predict, understand and to a certain extent influence banks’ decision-making processes.

Running a business ourselves, we are able to attach the right status to the economic aspects, which distinguishes us from purely legal consultants.

In particular in cases of cross-border restructuring, our multi-lingual competence is beneficial because we are able to read and analyze the documents in their original language and do not depend on translations.

Debt management bank

Area of Expertise

Specialises in advising banks, corporates, shareholders, creditors and debtors on debt restructuring, turnaround and insolvencies, mainly in proceedings with cross-border environment; Collaboration with insolvency administrators in cross-border insolvencies in the scope of Council regulation (EC) 1346/2000 on insolvency proceedings.
In his career he has advised on numerous high profile debt restructurings and insolvencies, be it domestic, EU cross-border or international, including ISPAT International, Orinoco Iron, Lloyd Werft Bremerhaven, Cassens Werft SSW, VermögensGarant AG, F&P AG&Co.KG, ae group AG and Trevira GmbH.
Corporate counseling, legal counseling in mergers and acquisitions.

Languages: German, English, Polish

 

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Office Frankfurt
Tel: +49 69 348 771 660

Office Poznan
Tel: +48 61 880 1067

Email: ABunk@blpa.law

 

Do you lack the manpower to handle non-performing credit exposures with the required commitment? You do not want to sell non-performing loans and are looking for alternatives?

With us, you can “outsource” your bad debts.

By “outsourcing” we mean the active takeover of the management of non-performing loans. By this we distinguish from our servicers, which manage the debt more or less well. You combine the work relief that you would receive when selling the debt, but retain the control and minimize a potential reputation risk as the debt remains in-house.

YOUR advantages:

  • Relieving the in-house staff from routine work;
  • Release of capacities for higher-ranking tasks and/or credit exposures with higher probability of recovery;
  • Full control over the credit exposure;
  • No reputational risks, as no sale of receivables;
  • Revenues remain with the lender;
  • No risk of mispricing receivables;
  • Full cost control through monthly flat fees.

OUR servicers:

  • Taking over of all everyday activities according to previous agreement;
  • Leading negotiations with debtors up to a submission of a final proposal for restructuring;
  • Representation in creditors’ committees and drafting of reports according to your internal need or documentation requirements;
  • Preparation of board papers and proposals for resolution by the board (if desired);
  • Carrying out or supervising enforcement measures during the recovery phase;
  • Answering auditor’s questionnaires on the value of the commitment, if desired;
  • Preparation of monthly or quarterly progress reports according to your documentation needs.

Did we pique your interest?

Our specialist in this area will be pleased to provide you with more detailed information by phone or personally.

Representation in creditor committees

Financial institutions often lack sufficient manpower to effectively exercise tasks in creditor committees. In some cases, there are also concerns to position an employee of the financial institution in a creditor committee for fear of reputational risks of out of business policy considerations. Due to those reasons, the effective exercise of control and the representation of the financial institutions’ interest during the restructuring and insolvency proceedings is often neglected.

This is why we offer our experienced consultants in this area to become engaged on your behalf. This not only ensures that the interest of the financial institution is taken into account during the insolvency proceedings, but we also take over control and reporting obligations towards the internal bodies of the financial institution. This ensures that on the one hand side there is sufficient “distance” to the insolvency proceedings to minimize reputational risks, while on the other hand “proximity” is ensured to realize a clean flow of information and a balance of interests in the creditor’s favor.

We would be pleased to take on the function of a creditor committee member for you and thus ensure that you are not only always informed on the progress and the status of the proceedings “first hand”, but also that your legitimate interests are sufficiently heard in the “concert of the participants”.

Insolvency administration in CEE states

In many Central and Eastern European countries, special licenses or authorizations are required to pursue an activity as insolvency administrator or restructuring consultant. In our BLPA | Restructuring network, we work with colleagues, who have those licenses or authorization in their respective country. In Poland, we also have our own licensed consulting company. In collaboration with our clients, we can not only develop a complex restructuring concept, but also implement it. When selecting our partners, we have put special emphasis on long-term practical experience and knowledge.

We would be happy to elaborate more on this in a personal meeting.

Restructuring management in CEE states

In addition to the more classic insolvency administration and jointly with our BLPA | Restructuring network, we offer services in restructuring management.

These services include both, the out-of-court monitoring and supervision of restructuring efforts in the name and on behalf of the Shareholders or the creditors (as the case may be), as well as the preparation and implementation of restructuring plans, which require judicial approval. This includes the moderation of voting and coordination of restructuring plans and the negotiations with state-owned creditors. Our clients benefit from our experience in this field of consulting as well as from our experience in the actual implementation of restructuring concepts.

We would be pleased to provide you with further information in a personal meeting and where this is permitted by law, provide you with recommendations.

Distressed M&A

With us, you stay the course, even in blustery business conditions.

A viable path in the reorganization of a company may be found in the sale of the same or parts thereof. Such a transaction, due to the legal and actual framework conditions of the crisis, is not comparable to an ordinary M&A transaction. The risk profiles on the buyer and seller side differ significantly from standard situations.

Our consultants have accumulated multifaceted experiences in such situations. We are aware of the time and legal pressure and the associated challenge.

We have gained experience both on the buyer side as well as the seller side in distressed M&A situations.

We would be pleased to provide you with further details personally and where permitted by law, provide you with recommendations or references.

Director’s liability

 

Managing a company in a crisis situation, you are already sufficiently stressed. The situation can prove risky not only for your company but for yourself personally. Consultants whose primary task is to minimize their own risk by avoiding clear statements are no help. They are an additional stress and risk factor.

We accompany you in the reorganization process with practice-oriented, clear and comprehensible guidance. We believe that an advisor who becomes uncertain of his own advise in a crisis situation, has no business to be there. What you can expect of us, are clear and comprehensible legal statements. The business-decision remains yours.

Obviously, we cannot take away the risks associated with your specific situation. But we can help you to minimize those. We owe to you a clear and unmistakable description of the same. Not statements which consist mainly of qualifications. We wave red flags, where risks become intolerable and provide you with practice-oriented alternative solutions.

Should these alternatives prove painful, we accompany you to the very end.

Negotiations with banks a.o.

Area of Expertise

Specialises in advising banks, corporates, shareholders, creditors and debtors on debt restructuring, turnaround and insolvencies, mainly in proceedings with cross-border environment; Collaboration with insolvency administrators in cross-border insolvencies in the scope of Council regulation (EC) 1346/2000 on insolvency proceedings.
In his career he has advised on numerous high profile debt restructurings and insolvencies, be it domestic, EU cross-border or international, including ISPAT International, Orinoco Iron, Lloyd Werft Bremerhaven, Cassens Werft SSW, VermögensGarant AG, F&P AG&Co.KG, ae group AG and Trevira GmbH.
Corporate counseling, legal counseling in mergers and acquisitions.

Languages: German, English, Polish

 

View more

Office Frankfurt
Tel: +49 69 348 771 660

Office Poznan
Tel: +48 61 880 1067

Email: ABunk@blpa.law

 

Many restructuring efforts fail, contrary to general belief not due to the economic conditions, but because of the clumsiness of the consultant. The frequently expressed complaints about irrational behavior of the lender (banks, etc) in a crisis situation is very often based on a lack of understanding, what is feasible for a credit provider and what is not. In many cases, the decisive factor is not the extent of the necessary economic contribution but rather the set-up and arrangement.

Again and again, we are faced with situations, in which restructuring plans are submitted that are either not at all or only in an inadequate manner discussed and communicated to the creditor. Already for very practical reasons (with regard to timing of internal procedures necessary for a decision), such plans are doomed to fail. For a successful agreement on the restructuring plan, transparency and ongoing communication with the participants is more important than the actual economic contribution required.

You can profit from the experience of our team leader in this area, who has worked, partly also in-house, as person in charge in such situations. As is often the case in sales, not only the content of the reorganization plan is important but also the way it is conveyed to the creditors. The only thing scarcer in a crisis than cash is trust.

We are happy to assist you in the planning and communication with creditors, either by taking over the entire process or only selective areas. Please contact us for more information.