Rich and successful people have their special traits. Hard work, think big, innovative, integrity and risk taking are some of the "ingredients" that make them rich and successful. Here are the words of wisdom from Warren Buffet, Donald Trump, Steve Jobs, Howard Schultz, Oprah Winfrey, Mark Zuckerberg, Richard Branson etc:
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How to Prepare Loan Restructuring Proposal
As part of the restructuring process, the bank is likely to request for information from the borrower. This information will assist the bank in assessing the viability of the borrower and will be used to decide on the actions to be taken (e.g. to restructure or to commence legal action). To obtain favourable support from the bank, it is important to provide complete and accurate information. Transparency is vital. In order to provide comprehensive information to convince the banks to accept the borrower’s restructuring proposal, there is a need to prepare a detailed Loan Restructuring Proposal. This is an extremely important proposal as the survival of the company will depend on how the proposal is structured and presented. A typical Loan Restructuring Proposal should contain the following: 1. Executive Summary 1.1 Background and introduction 1.2 Objectives of the proposal 2. Corporate Information 2.1 Nature and history of business 2.2 Group structure 2.3 Capital structure 2.4 Board of Directors and key management staff 3. Financial Information 3.1 Review of operations 3.2 Financial performance (last 5 years) 3.3 Financial position (valuation based on various scenarios) 3.4 Projected cash flow (next 5 years) 3.5 Details of existing bank borrowings 4. Rationale for Restructuring 4.1 Causes of default 4.2 Pro-active actions taken 4.3 Management commitment 4.4 Potential recovery / Going concern 4.5 Economic impact 4.6 Sources of repayment 5. Proposed Restructuring Terms and Conditions 5.1 Credit facilities included 5.2 Details of proposed scheme 5.3 Interim standstill period 5.4 Proposed terms of restructured facilities 6. Other Information 6.1 Current legal proceedings 6.2 Contingent liabilities 6.3 Breach of covenants 6.4 Other significant events 7. Attachments 7.1 Audited financial statements (5 years) 7.2 Management accounts (current) 7.3 Projected cash flow (5 years) 7.4 List of all existing bank borrowings 7.5 List of legal proceedings (if any) 7.6 Schedule of asset divestments (if any) 7.7 Other supporting documents Read Part 1, Part 2 and Part 3. |
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