Corporate and SME Workouts : A Manual of Best Practice

Corporate and SME Workouts : A Manual of Best Practice

Bank loans can become non-performing because of problems with the borrower s financial health, problems with the design or implementation of lender protection features, or both. In ascertaining how to deal with a problem loan, it is important to...

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Bibliographic Details
Main Author:	International Finance Corporation
Format:	Working Paper
Language:	English en_US
Published:	Washington, DC 2015
Subjects:	ACCOUNTING ACCOUNTS RECEIVABLE ARBITRATION ARREARS ASSET CLASSIFICATION ASSET PRICE ASSET QUALITY ASSET RESOLUTION ASSET SALES BALANCE SHEET BANK BALANCE SHEETS BANK LOAN BANK LOANS BANKING REGULATIONS BANKING SECTOR BANKING SYSTEM BANKRUPTCY BANKRUPTCY COURT BANKRUPTCY FRAMEWORK BANKRUPTCY LAW BANKRUPTCY LAWS BANKRUPTCY PETITION BENEFICIARY BORROWER BUSINESS BORROWER BUSINESS PLAN CASH FLOW CASH FLOWS CASH MANAGEMENT CASH SHORTAGES CENTRAL BANKS CHANGES IN OWNERSHIP CLAIMANTS COLLATERAL COMMERCIAL BANK COMMERCIAL BANKS COMPANY LAW COMPANY LOAN CONCESSION CONFLICT OF INTEREST CONFLICTS OF INTEREST CONSEQUENCES OF BANKRUPTCY CONSUMER LOANS CONTINGENCY PLANNING CONTRACT LAW CONVERSIONS CORPORATE GOVERNANCE CORRUPTION COSTS OF COLLECTION COUNTRY RISK CREDIBILITY CREDIT RISK CREDITOR CREDITORS CURRENCY DEBT DEBT FINANCING DEBT FORGIVENESS DEBT INSTRUMENTS DEBT OBLIGATIONS DEBT PAYMENT DEBT RELIEF DEBT-EQUITY DEBT-EQUITY SWAPS DEBTOR DEBTS DEFAULTS DISBURSEMENT DISPUTE RESOLUTION DISPUTE RESOLUTION MECHANISM DISTRESSED ASSET ENCUMBRANCES ENFORCEABILITY EQUIPMENT EQUITY CONVERSION EQUITY CONVERSIONS EQUITY INVESTMENTS EQUITY WARRANTS ESTATE EXPORTERS EXTERNAL DEBT FILING FOR BANKRUPTCY FINANCE CORPORATION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DIFFICULTY FINANCIAL DISTRESS FINANCIAL HEALTH FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL PROBLEMS FINANCIAL REPORTING FINANCIAL STATEMENTS FORECLOSURE FOREIGN EXCHANGE FOREIGN EXCHANGE RESERVES FRAUD FREE MARKET FUTURE FINANCIAL CRISIS GOING-CONCERN GOVERNMENT DEBT GOVERNMENT INTERVENTION ILLIQUIDITY INDEBTEDNESS INDIVIDUAL LOAN INDIVIDUAL LOANS INFORMATION SYSTEM INFORMATION SYSTEMS INFORMATION TECHNOLOGY INSOLVENT INSOLVENT BANKS INSURANCE INSURANCE POLICIES INSURANCE PREMIUMS INTEREST CALCULATIONS INTEREST PAYMENT INTERNATIONAL BANK INTERNATIONAL FINANCE INVENTORY INVESTING JUDGMENT JUDGMENTS JURISDICTION JURISDICTIONS LEGAL ACTION LEGAL ENVIRONMENT LEGAL PROCEDURES LEGAL REQUIREMENTS LEGAL SYSTEMS LENDER LENDERS LETTERS OF CREDIT LEVERAGE LIABILITY LIENS LINES OF CREDIT LIQUID ASSETS LIQUIDATION LIQUIDATION PROCEEDINGS LIQUIDITY LIQUIDITY RISK LOAN LOAN ACCOUNT LOAN ACCOUNTS LOAN AGREEMENT LOAN AGREEMENTS LOAN AMOUNTS LOAN BALANCE LOAN CATEGORIES LOAN CLASSIFICATION LOAN DOCUMENTATION LOAN MONITORING LOAN OFFICER LOAN OFFICERS LOAN PAYMENTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN RECOVERY LOAN REPAYMENT LOAN RESOLUTION LOAN TERMS LOCAL BANK LONG-TERM LIABILITIES MAKING PAYMENTS MARKET COUNTRIES MARKET RISK MARKETABLE SECURITIES MATURITIES MATURITY MATURITY MISMATCHES MINORITY SHAREHOLDERS MORTGAGE NEGOTIATIONS NET PROFITS NON-PERFORMING LOAN NON-PERFORMING LOANS NONPAYMENT NPL OBLIGATIONS TO CREDITORS OUTSTANDING DEBT OVERSEAS DEBT PARTNER BANKS PAYMENT DEFAULT PAYMENT HISTORY PAYMENT OBLIGATIONS PAYMENT PROBLEM PAYMENT PROBLEMS PENALTY PLEDGES PORTFOLIO PORTFOLIO SUPERVISION POTENTIAL BORROWER PRIORITY OF CLAIMS PRIVATE EQUITY PROCUREMENT PROFIT MARGINS PROPERTY TAXES PUBLIC SECTOR DEFICITS REAL ESTATE COLLATERAL REGULATORY AUTHORITIES REMEDIES REPAYMENT RETURN RETURNS RISK MANAGEMENT RISK MANAGEMENT SYSTEM SECURITY AGREEMENTS SECURITY INTEREST SECURITY INTERESTS SETTLEMENT SHAREHOLDER SHAREHOLDERS SHORT-TERM BORROWING SMALL BUSINESS STOCK OPTIONS SUBORDINATED DEBT SUPERVISORY BOARD SURETY TITLE TRADE UNIONS TRANSACTION TRANSFER OF RESPONSIBILITY TRANSFER OF SECURITY TRANSPARENCY TRUSTEE TURNOVER UNSECURED CLAIMS VALUATION VOIDABLE PREFERENCE VOIDABLE PREFERENCES WARRANTS WILLINGNESS TO PAY WORKING CAPITAL WORKOUT WORKOUTS
Online Access:	http://documents.worldbank.org/curated/en/2011/06/24102450/corporate-sme-workouts-manual-best-practice http://hdl.handle.net/10986/21740

Description
Summary:	Bank loans can become non-performing because of problems with the borrower s financial health, problems with the design or implementation of lender protection features, or both. In ascertaining how to deal with a problem loan, it is important to distinguish between a borrower s ability to pay and willingness to pay, Making this distinction is not always easy and requires effort. This manual was written as a guide for lending institution staff dealing with non-performing loans (NPLs) extended to corporations and small and medium enterprises (SMEs). It deals with both ad hoc and systemic financial distress and delves into how borrower problems may have arisen in the first place. It provides guidance to lending institutions staff responsible for handling individual problem loans and to senior managers responsible for organizing portfolio-wide asset resolution.