Distressed Assets - Overview

Overview

Our Transaction Advisory Services Group in Beijing has been very active in China’s efforts to resolve its disposition of Non-Performing Loans (NPLs) / distressed assets held by the state banks and the asset management companies in China. Our services span a wide spectrum of activities including:

• Transaction Financial Advisor
• Due Diligence Services
• Portfolio Valuation

• Acting as master financial advisor to Financial Institutions and Asset Management Companies to help their designated NPL resolution team to develop overall resolution strategies, business plan, forecasts, staffing requirements, overhead, projected recoveries and timing of cash flow
• Review and analyse the NPL / distressed assets situation for financial institutions and commercial enterprises
• Develop valuation and NPL portfolio ‘sampling’ to assess recovery values and ‘loss’ estimates from various resolution strategies
• Advise on resolution strategies and timing to maximize recovery values and safeguard assets
• Advise on various loan sales programmers, both domestic and international
• Advise on transaction structures
• Advise on legal, tax and policy issues regarding NPL transactions
• Advise on securitisation of NPLs, i.e., residential mortgages
• Perform and manage the due diligence process for NPL transactions, for either the seller or the buyer
• Provide expertise on loan work-out and restructuring programmes to enhance value
• Advise on proposed ‘settlement’ arrangements with borrowers
• Assist the seller in developing and implementing a ‘positive’ media programmes with the international financial press and news media regarding progress on NPLs
• Assist the seller in evaluating proposals from various international investors and financial consultants
• Devise a monitoring and control system to evaluate the effectiveness and efficiency of the NPL resolution team of financial institutions and AMCs
• Develop information systems for better management of NPLs
• Advise on incentive compensation programmes and employee evaluation systems for the NPL resolution team
• Develop specialized training programs for the NPL resolution team
• Determine how to best position and market selected NPLs on a global scale based on investor demand
• Develop an investor relations function to assure appropriate levels of communication and information flow with local and international investors
• Advise on developing an NPL website to communicate NPL activities and upcoming transactions
• Provide negotiation support during transaction negotiations
• Assist in obtaining approvals from various Government Authorities during the transaction process
• Advise and manage the entire bidding process in accordance to international best practice
• Organize and coordinate “road shows”