Distressed Loan Management
Online Training Seminar 

 

Distressed Loan Management was created for community bank lenders. Lenders  that currently face an extremely challenging and uncertain business environment.  This training prepares lenders to early identify a distressed business, properly evaluate the loan and choose a suitable course of action for minimizing the cost & potential loss to the bank.  

 
The training consists of approximately 3 hours of video training supported by 18 pages of PDF printed material. There will also be 2 online meetings of 2 hours each providing 4 additional hours of instructor led discussion of the material.
 
Fee:  $ 250 per attendee
 
Schedule
Course # 20061  Instructor Led Online Meetings
Meeting # 1   June 16th     2:00 pm - 4:00 pm       Video Sections 1 - 6  
Meeting # 2   June 18th     2:00 pm - 4:00 pm       Video Sections 7 - 12  
 
Course # 20062  Instructor Led Online Meetings
Meeting # 1   June 23rd     2:00 pm - 4:00 pm       Video Sections 1 - 6  
Meeting # 2   June 25th     2:00 pm - 4:00 pm       Video Sections 7 - 12  
 
All meeting times are at Central Time unless noted otherwise.
Online training videos covering meeting discussion topics will be made available  to participants for reviewing approximately 30 hours prior to a scheduled online  meeting. 
 
Participants are required to review topic videos prior to attending online meeting.
 
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Meeting # 1  Video Discussion Topics   
Video Section # 1  Introduction (15 minutes/ 1 PDF page)
The seminar will primarily focus on managing distressed business banking loans. Typical loans  generated by community bank lenders. ( Business owners that manufacture a product, sell a product or provide a service) We outline how the training covers the early recognition of distress, understanding the problem, evaluation of the business and developing an appropriate strategy.   Later sections of the training are devoted to evaluating CRE (Investment) loans and negotiating standstill & restructure agreements for CRE loans in default. Lastly, we review the key issues associated with Chapter 7 & 11 Bankruptcies.
 
Video Section # 2 The Distressed Business (21 minutes)
What are the early signs that a business is under distress? Distressed businesses over time have the potential to evolve into problem loans. In this section, we analyze the evolution of a distressed business as it moves thru 3 phases on the way to a business failure. We identify specific signs that indicate how serious the distress. Early recognition combined with a proper evaluation that a business is under serious distress allows for the opportunity to consider 5 possible strategies to manage the credit.
 
Video Section # 3 Understanding the Problem (9 minutes)
Too many times we focus on the results of the problem not the problem.   What has happen in the environment of the business that has generated these losses, declining cash flow, etc. In essence, what is the problem? After understanding the problem, lenders then need to decide if the problem is fixable? If fixable, what would it take to "fix" the problem? The answers to these two questions is the first step in selecting an appropriate strategy.
 
Video Section # 4 Work Out Strategies (22 minutes/ 2 PDF pages)
We review five possible work out strategies that could be deployed in managing a distress business. For each strategy, the training itemizes what requirements should be met before deploying the strategy. Advice is also provided as to potential problems and issues that could arise in pursuing a given strategy. Advice and perhaps even warnings gained thru experience.  The determination of a work out strategy should follow an in-depth evaluation of the business.   The next 5 sections of the training cover how to conduct the evaluation of a distressed business.
 
Video Section # 5 Management Evaluation (10 minutes)
Video Section # 6 Financial Condition Evaluation (26 minutes)
Management: Does management have the skills required to steer the business thru these stormy waters? Can they provide reliable information on a timely basis? Key questions that must be answered in our evaluation of management.  This section provides practical guidance on how to properly gauge the strength of management.
 
Financial Condition: How should a lender assess the financial condition of a distressed business ?  How serious is the financial health of the business?  How to gauge the health when financial statements are not available? This evaluation will be considerably different than evaluating a healthy business.  We review a process as to how to approach this evaluation and what information will have to be obtained to determine the present and possible future health of the business.
 
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Meeting # 2  Video Discussion Topics   
Video Section # 7 Projected Cash Flow (9 minutes /1 PDF page)
What will we need to consider when creating and/or analyzing the projected cash flow of a distressed business?  Their projected cash flow will have a significant bearing on our decision as to what strategy fits the situation.  This section reviews what should be addressed in a projected cash flow.  The cash flow analysis will be decidedly different than analyzing the cash flow of a healthy business.  Lastly, we review a sample cash flow and follow the possible questions that a lender could ask of the borrower.
 
Video Section # 8  Collateral Evaluation (13 minutes / 1 PDF page)
Video Section # 9  Collateral Liquidation Analysis (22 minutes/ 4 PDF pages)
The ultimate liquidation value of collateral will have a significant impact on selecting the appropriate strategy for managing a distress business loan. In Section 8, we lay out a framework of crucial steps that should  be taken in evaluating collateral.  Overlooking these steps may prove to have a negative impact on the liquidation value.
In Section 9, we review important practical and legal considerations in liquidating both tangible & intangible personal property. (Accounts receivable, equipment & inventory) We address specific requirements for formulating a liquidation plan and value. Lastly, participants review a detailed sample liquidation valuation for equipment.
 
Video Section # 10  CRE Distressed Loan (20 minutes / 1 PDF page)
Video Section # 11  CRE Loans in Default (12 minutes / 2 PDF pages)
What is the shape of the property today? What is the probability that this loan could be in payment default in the not too distant future? Beyond just updating an appraisal, we review the steps to properly evaluate the condition of a distressed CRE (Investment) property.  (Investment properties such as office buildings, retail strip centers, hotels, etc. )  We focus on what a lender should check and evaluate regarding a distressed property. Lastly, participants receive a list of what should be considered in developing a realistic projected cash flow. 
 
If a distressed CRE loan goes into default, it is not unusual for borrowers to attempt to seek time to improve the property's condition/cash flow.  With even a minor improvement ot the property's condition/cash flow, they may seek a long term restructure of the loan.  Accordingly, Section 11 covers the key requirements for negotiating Stand Still and Restructure agreements. Practical guidance & advice for lenders who find themselves involved in considering and structuring these agreements.
 
Video Section # 12  Bankruptcy (4  minutes / 6 PDF pages)
All lenders should have a fundamental understanding of commercial bankruptcies. In this section, participants review a 6 page hand out covering Chapter 7 & 11 bankruptcies. The material covers bankruptcies from a lender's perspective. What are the issues that arrive that a lender must deal with in a bankruptcy? How to prepare for a possible bankruptcy. We conclude with practical advice for preparing for a possible bankruptcy and dealing with the bankruptcy process. 
 
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Instructor: Jim Shreve  
Over the past sixteen years, hundreds of lenders and credit analysts have attended lending seminars conducted by Jim Shreve. He has over 25 years in commercial lending and credit experience. He holds a Masters in Finance and a B.S. in Accounting.  His work-shop styled approach to training is well known thru out the United States for providing a  rewarding experience for all attendees regardless of their prior experience in lending or credit analysis or lending.
 
Distressed Loan Management
Online Training
 
Fee: $250 per attendee
 
Course # 620061                          Register for Seminar
June 16th        Meeting # 1     2:00 pm - 4:00 pm   
June 18th        Meeting # 2     2:00 pm - 4:00 pm
 
 
Course # 620062                          Register for Seminar
June  23rd        Meeting # 1     2:00 pm - 4:00 pm   
June  25th        Meeting # 2     2:00 pm - 4:00 pm

 

 

 

 

Distressed Loan

Management

Online Training

 

Course 20061

June 16th    2 - 4 pm

June 18th    2 - 4 pm

 

Course 20062

June  23rd    2 - 4 pm

June  25th    2 - 4 pm

 

 

Commercial Financial Analysis

 

2020 Seminars

Dates to be announced

 

Houston

Kansas City   

Dallas/Fort Worth