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Tom Kavanagh kavanaghfennell 25th September 2013 CORPORATE RESTRUCTURING SUMMIT.

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Presentation on theme: "Tom Kavanagh kavanaghfennell 25th September 2013 CORPORATE RESTRUCTURING SUMMIT."— Presentation transcript:

1 Tom Kavanagh kavanaghfennell 25th September 2013 CORPORATE RESTRUCTURING SUMMIT

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

3 Predicted 2013 total: 1, overall total: 1,684 *statistics do not include personal asset receivership Year on year decrease of 14% Year on year decrease of 20%

4 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’ Trends & Developments

5 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 Large Property Sales

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

7 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 Debt Restructuring

8 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. 4% margin = 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 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 Outlook For Next 12 Months


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