Managing Distressed Borrowers

This virtual course is made up of  two sessions – each of the two sessions is 3 hours, from 12:00 PM - 3:00 PM ET.  Session 1: April 1, 2025 Session 2: April 2, 2025

As loan quality diminishes, the prevalence of problem loans and subsequent workouts is increasing rapidly across the banking industry. Whether your bank’s strategy is to hold, restore, liquidate, charge off, or exit the loan, a very specific, differentiated skillset is required for lending professionals who must deal with the distressed borrower to achieve the best outcome for all involved. With the stakes high, it’s critical that both experienced workout officers and those who are transitioning into this position be equipped with the tools and know-how needed to deal with the new normal.

Designed as an advanced tool to quickly transition lending professionals from their current roles to a loan workout banker, this course will review the keys to sound, successful problem loan workouts and offer hands-on experience in the form of interactive, challenging case studies from a variety of industries. 

By attending the course’s one preliminary session and four modules, you’ll get to explore various delicate situations that regularly arise in workouts and learn how to resolve them by applying core concepts and best practices used by experts. Finally, you will have a better understanding of critical internal and regulatory reporting required and understand the importance of the bank’s overall policy governing the credit workout strategy.  

Modules

Module #1: Big Picture Goals and the Inputs Required to be Successful

• Explore the big picture goals of workouts, such as preserving problem loan/customer value and optimizing the outcome for the bank
• Review the major inputs (collateral valuation, financial statement analysis, management assessment) that are used to assess workout viability

Module #2: The Five Workout Resolution Options and How to Achieve Them

• Learn how to craft a strategic credit plan to achieve one of the five workout resolution options
• Analyze potential legal remedies to work out of difficult situations or deal with noncompliance

Module #3: Reporting and Pitfall Avoidance

• Discover best practices for both internal and regulatory reporting around workouts
• Determine how to evaluate collateral, learn about lender liability, and explore cases of fraud

Module #4: Loan Participations, Shared National Credits and TDRs

• Walk through a cautionary tale about loan participations
• Unpack regulator, agent, and participant perspectives on Shared National Credits
• Dive into Troubled Debt Restructures (TDRs) and COVID-19 exceptions

You Will:

• Develop the skills and experience necessary to become an effective workout banker in a relatively short period of time
• Complete take-home case studies from different industries to gain hands-on experience in a friendly learning environment
• Explore the ins and outs of how to work through a tough situation with a client – know the right questions to ask and how to talk to clients to get to the real issues and work out the loan
• Examine the regulations and laws governing the process and how to follow them to protect the bank’s reputation and bottom line
• Learn about the things to avoid, consider, and practice when dealing with borrowers, lawyers, consultants, and litigation that could ultimately result in bankruptcy and have an impact on the balance sheets

Who Should Attend?

Anyone currently in or transitioning to a role responsible for loan workouts, including:

• Special asset workout officers
• Relationship managers/lenders
• Loan resolution team members