This service is offered in conjunction with financial restructuring, so that AlShall clients achieve optimal financial structure for their projects or companies. This service is further complimented by the established relations AlShall has with financing institutions that specialize in allocating and arranging different financing schemes including loans, syndicated loans, and bond issues.
Project Example – Financial Restructuring.
Assignment
Preparing a corporate level strategy to restructure the debt and assets of an investment company (balance sheet restructuring).
Client Name
Kuwaiti investment company.
Client’s Activities
Leasing, finance and investment.
Project Size
Debt obligations size for restructuring: ~USD 125 million (contractual debt) and ~USD 50 million (other obligations)
Assets size for restructuring: ~USD 265 million (mostly real estate investment properties)
Assignment Date & Duration
2012, 3 months.
Main Area of Focus
Restructure company’s indebtedness (local debts) and investments with the aim of primarily: i) restructuring paying-out its defaulted financial obligations in full, ii) restructuring its assets-base, and iii) avoiding liquidation (or bankruptcy). The objective is to keep the company operating on an ongoing basis and restoring its profitability with an ultimate goal of protecting shareholders’ wealth.
Services Provided
Review, analyze and assess the company’s financial position and assess its liquidity base and solvency position.
Identify and assist in determining the fair value of the assets to be used in the debt restructuring plan and especially those to be collateralized.
Review the existing strategy and assist in developing a realistic strategic plan to serve the company’s goals and guide it in its corporate debt restructuring plan.
o Assist in setting strategies to ensure the settlement and closing of debt claims from all creditors and other related parties claims while preserving and protecting shareholders wealth.
o Assess and propose a debt restructuring plan and prepare debt restructuring schedules accordingly.
o Assess and estimate future cash flows under the context of a corporate debt restructuring plan.Propose an out-of-court Corporate Debt Restructuring (CDR) plan with alternative scenarios to be presented to creditors.
Assist the client in negotiations with creditors, especially the most senior creditors (in terms of size of outstanding debt and collateral) in order to reach an understanding on a CDR plan scenario acceptable to all stakeholders prior to resorting to protection under Kuwait’s Financial Stability Law (“FSL”) No. 2 of 2009.
Outcome
The company received approval to enter under FSL Law based on the CDR plan developed by AlShall.
Project Example – Strategic Planning
Assignment
Strategic plan for restructuring an investment company’s assets in order to reallocate assets to more attractive asset classes, and facilitate meeting debt obligations.
Alternative business models were developed with a focus on a real estate investment strategy.
Client Name
Kuwaiti listed investment company.
Client’s Activities
Direct investment, investment banking and asset management.
Project Size
Assets Size: ~USD 700 million.
Assignment Date & Duration
2012, 5 months.
Main Area of Focus
Assist the client in developing a strategic plan with the aim of: i) optimally restructuring assets and liabilities in order to meet current financial obligations while allowing future growth, ii) evaluating new sources of revenues and different operating models, iii) revising the strategy to focus on real estate investments, iv) recommending optimal skills and staffing levels for the target organization structure, and v) recommend new grading and compensation schemes. The objective is to advice the Company on the optimal method of restructuring, which would assist in the progress towards its revised business strategy focusing on real estate investments as well as repayment of debt obligations.
Services Provided
Reviewed and assessed the company’s financial, liquidity and solvency position, its underlying assets/investments, and subsidiaries’ base and their composition.
Reviewed the company’s existing and adopted corporate debt restructuring plan and assessed its impact on the company’s existing strategic plan and business model.
Assessed the company’s strategic position within its sector and identified any gaps in its strategic plan, business model, and implementation action plan.
Reviewed and recommended alternative business strategies
o Reviewed possibilities of improving the company’s investment activities/services by adding new activities
o Reviewed the role and strategy for each subsidiary within the group to fit within the Parent’s revised strategic plan
o Reviewed capabilities that could be provided by existing resources and capabilities that would have to be sourced separately.Reviewed and assessed overall asset-liability management to ensure that timing of cash flows from assets investments/divestments fitted the company’s overall strategy and adjusted where required the company’s asset allocation.
Advised on company’s capital restructuring plan and provided guidance on writing-off losses, capitalizing premiums and reserves and reaching an efficient equity capital structure.
Recommended optimal skills and staffing levels to match target organization structure, including right-sizing and alternative skills and structure wherever applicable.
Outcome
Adjusted and developed the existing business strategy to match the revised focus towards real estate investments as well planned for adequate cash inflows to serve debt obligations.
Three detailed presentations were approved by the company’s management and a summary presentation was made to the board of directors which included:
– External and internal analysis of the company’s situation, positioning and review of strategic plan
– Second opinion on the strategy, business model and asset allocation
– Human resources analysis and recommendations (including new organization structure and compensation scheme)Recommendations were adopted and put to implementation.
Loan Syndications and Debt Finance Experience List
By Project Name | Country | Sector | Services Performed
2012
Restructuring of a listed real estate company | Kuwait | Real Estate | Financial restructuring
Strategic and HR planning for a listed investment company | Kuwait | Financial Services | Financial and organizational restructuring – strategic and human resources planning
Valuation of an industrial company for restructuring and expansion purpose | Kuwait | Industrial | Valuation for the purpose of restructuring
Bonds issuance advisory | Kuwait | Real Estate | Advisory services relating to a KD 26.5 million bond issuance
Restructuring of an investment company | Kuwait | Real Estate – Financial Services | Restructuring and valuation of an investment company
Valuation of a holding company | Kuwait | Real Estate – Financial Services | Valuation of a holding company i.e. part of a group for internal restructuring purposes in order to investigate the potential of consolidating its activities with other companies within the same group
2011
Valuation of a holding company in order to investigate the potential of consolidating its activities with other companies within the same group | Kuwait | Real Estate – Financial Services | Valuation of a holding company i.e. part of a group for internal restructuring purposes
2010
Valuation of an investment company for restructuring purposes | Kuwait | Financial Services | Valuation of an investment company for restructuring purposes
Valuation of four real estate companies for purposes of restructuring | Kuwait | Real Estate | Valuation of four real estate companies (sister concerns) for purpose of restructuring and establishing a holding company
2007
Establishment of Kuwait Capital Markets Authority | Kuwait | Government – Financial Services | Consulting services- survey ; law on regulating the securities industry – establishment of a capital markets authority
Capital restructuring and financing sources options assessment | Qatar | Logistics | Financial structuring, assessment of legislative environment for Sukuk issue, rating agencies assessment
2006
Valuation of a contracting company | Kuwait | Contracting | Valuation study, licensing, legal & financial structuring and Information Memorandum for a company providing specialized engineering and contracting services
2001
Feasibility study and raising debt financing for a specialist hospital in Bahrain | Bahrain | Health Care | Review and update of feasibility study and raising the required debt financing (KD 3 million)