Modelling for Debt Restructuring

Course Overview:

This two day workshop explores:

• Spreadsheet best practice
• Building a flexible model in stages
• Forecasts and financial analysis
• Restructuring debt
• Adding management reporting

The programme is taught using a mixture of instruction, demonstrations and practical exercises.  The workshop emphasis concentrates on the application of financial theory to Excel to produce a flexible and informative model.

Each session consists of theory, demonstrations and a practical exercise as participants develop the model in stages. The template for each session acts shows the solution to the previous session.

Comprehensive product notes will be provided to all participants. Participants receive a full pack of Excel software and templates for future reference as part of the course materials.

What participants will gain:

• Principles of spreadsheet best practice
• Application of best practice principles to a restructuring model
• How to understand the financial reports
• Methods to forecast and restructure debt
• How to report and use the model

Each participant will be required to bring a laptop running Microsoft Office with CD-Rom to the seminar.

Course Content:

Day One

Case Study Outline

• Analysis framework
• Reasons for financial distress
• Current data
• Case study outline
• Model objectives
• Systematic Design Method
• Basics of spreadsheet design
• Modelling ‘rules’
• Common spreadsheet errors

Exercise: starting a model template

Historic Statements

• Modelling initial accounts
• Income and balance sheet
• Generating cash flow

Exercise: adding and checking accounting statements

Historic Analysis

• Identifying existing debt
• Calculating forward debt repayments and current balance
• Calculating debt and other ratios
• Bankruptcy ratios and scores

Exercise: adding loan sheets and calculating ratios

Forecast Accounts

• Forecast accounts
• Time lines and flags
• Sales growth
• Cost base
• CAPEX requirements
• Working capital – stock, receivables, payables
• Integrity checks
• Circular references

Exercise: completing initial forecast statements

Day Two

New Loans

• Excel functions
• Calculating new loans
• Rate, profile and timing
• Amortisation profiles
• Incorporating scenarios

Exercise: calculating new loans and repayment profiles

Completing Forecast Accounts

• Incorporating new loans
• Balancing the accounts
• Checking on requirements for further capital
• Recalculating forward ratios
• Computing forward default scores
• Integrity checks on results

Exercise: adding loans to forecast statements and checking cash position

Model Stress Testing

• Constructing forward scenarios
• What-if and downside analysis
• Optimising the model results
• Assessing the importance of individual factors

Exercise: layering stress testing on the initial model

Model Completion

• Version control
• Documentation
• Chart output
• Dynamic dashboards
• Management summaries

Exercise: model completion and final checks

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.