INSOL Financiers' Group Interactive Forum: COVID relief measures - a case of extend and pretend?
See below to view the recording from Thursday 15 October 2020
The economic impact of the COVID-19 pandemic has created, and continues to pose, significant financial challenges to global companies with many facing solvency issues.
The Forum saw Mahesh Uttamchandani, Global Practice Manager, World Bank Group provide an initial overview followed by a panel discussion and interaction with online attendees.
Moderator: Mark Sutton, Commonwealth Bank of Australia
Mahesh Uttamchandani, Global Practice Manager, World Bank Group
Simon Granger, FTI Consulting
Anke Heydenreich, Attestor Capital
Sue Atkins, JPMorgan
The panel discussed what the future could look like for financiers as relief measures such as government support schemes, loan deferrals, and rental moratoriums are withdrawn. The panel discussion also considered how an increased number of restructuring cases will be dealt with, and what countries will be impacted as a result of shrinking economies.
For further information, please contact Penny Robertson.
INSOL International Asia Financiers’ Group Launch Event, Hong Kong, 17 October 2019 5pm - 7.30pm
Kindly hosted by Allen & Overy (Hong Kong) 9th Floor, Three Exchange Square, Central, Hong Kong.
Top industry experts provided an interesting and relevant discussion on the ‘Changing Face of Asia Workout’ drawing on their recent experiences in restructuring in key markets in the region.
Chair: Guy Isherwood, KPMG
Panel: Angelina Bopp, Standard Chartered Bank
Cosimo Borrelli, Borrelli Walsh
Chris Gradel, PAG
Chris Page, The Hong Kong and Shanghai Banking Corporation Limited
Richard Woodworth, Allen & Overy
Joint Seminar INSOL International Financiers’ Group / INSOL Europe Financiers’ Group, London, 2 December 2019, 5 - 7.30 pm
Kindly hosted by NatWest, 250 Bishopsgate, London, EC2M 4RB
‘Activist stakeholders – saints or sinners?’
Discussing the impact of insurers and credit default swap holders on restructuring.
Panel: Nick Ram, Lloyds
David Beckett, SC Lowy
Simon J. Baskerville, Latham & Watkins
Martin Gudgeon, PJT & Partners
For further information email [email protected]
INSOL International / INSOL Europe Financiers Group Joint Seminar
‘Directors - who wants to be one!’
This highly successful second annual meeting of the joint INSOL International / INSOL Europe Financiers’ Group took place in London on 20 November, chaired by John Willcock, Editor of Global Turnaround.
The stimulating discussion was hosted by Commonwealth Bank of Australia, whose Mark Sutton, Senior Executive Manager, Group Credit Structuring, opened the proceedings. The theme was the package of measures floated by UK regulators in response to a number of controversial business collapses recently, including the retail group BHS and the outsourcing giant Carillion.
The suggested responses include strengthening corporate governance pre-insolvency, and potential new powers to investigate and pursue directors over companies that have been sold or dissolved.
This prompted two strands of discussion; given these changes, who would want to be a director? And more generally, who should play the role of ringmaster in the kind of complex restructurings now being seen with multinational companies boasting increasingly complicated capital structures?
The panel consisted of Patricia Godfrey, a partner in the banking and finance team at CMS; Andrew Shaw, a civil servant in the UK’s Insolvency Service who currently heads its team preparing for Brexit; Ed Boyle, a restructuring and insolvency partner with KPMG; Julian Verden, Stemcor Group’s managing director for Europe; and Richard Stables, EMEA head of restructuring at Lazard.
The debate was brought to a conclusion by Alastair Beveridge of AlixPartners, past Co-Chair of the INSOL Europe Financial Institutions Group, and the joint group now looks forward to a similar event next year.
INSOL Europe Financial Institutions’ Group and INSOL International Lenders’ Group Joint Seminar 2017
‘What will next time look like?’
On 11 October 2017 INSOL Europe’s Financial Institutions Group and INSOL International’s Lenders Group held an inaugural joint seminar at the offices of The Commonwealth Bank of Australia.
After a quick introduction by Matthew Phipson of Commonwealth Bank, the presidents of INSOL Europe (Radu Lotrean) and INSOL International (Adam Harris) gave very warm welcomes to all and endorsed strongly the collaboration between the two organisations.
The panel discussion centred around the INSOL International Lenders’ Group current project, being led by Stephen Foster of Hogan Lovells, with the title “What will next time look like?”.
The chair of the panel, Professor John Kay (a renowned economist) started the discussion with his view on the different approaches taken to regulation in 1) financial services (written by lawyers and based on prescriptive rules and regulations) and 2) utilities (written by economists and based on structures and incentives) – he felt that the economists approach had probably been more effective, albeit not perfect. He felt that the financial crisis in 2008/9 had demonstrated a failure in regulation and he was concerned that adding more regulation may not be the answer and may have unintended consequences.
Stephen Foster then turned the discussion to the new IFRS9 rules and the move from provisioning on incurred losses (current rules) to lifetime expected losses (new rules from January 2018). He stated that for 1 in 6 banks this would result in a predicted need of a 50% increase in capital base and that for 80% of banks it would result in higher provisions. The likely consequence was that banks would have to sell positions early (or potential commence enforcement earlier) which would provide opportunities for secondary buyers. He also mentioned the restrictions in certain leveraged transaction documents of either white list (restricting lenders ability to sell) or need for borrower approval which might act to impede attempts to sell and result in an impasse.
Alistair Dick (PriceWaterhouseCoopers) took a slightly different tack talking about how the rules would impact companies/borrowers – he was concerned that it might actually restrict the availability of credit to companies at precisely the time they needed it most and that this could be very problematic. The inconsistent approaches in different countries to dealing with borrower and ultimately bank liquidity challenges was recognised as an issue generally which has continued since the crisis. Overall he felt that trading of debt positions (which was expected to be a consequence of the new rules) was a good thing for the market and would help with the recycling of capital.
The discussion reverted to regulation with Simon Samuels (Veritum Partners) – in particular the differences between the regulated and un-regulated players. He felt that banks had had more capital than they really needed pre-crisis and were now being asked to increase that substantially – he felt this was an inefficient use of capital. Concerns were raised that Basel IV with its risk weighted floor provisions meant that banks would not only be encouraged (by the rules) to sell bad assets they would also be encouraged to sell good ones. He reminded everyone that IFRS9 was just about recognition of the losses – not about the amount of loss actually incurred – and that any dramatic event could quickly eat up capital reserves because of the way provisions would from 2018 have to be accounted for.