How does the successor loan agent support distressed debt investors?

A combination of market innovation and prolonged economic stress is creating new value opportunities for APAC?distressed debt investors.

Across APAC trade finance, project finance and fund finance deals, we see agile private credit funds delivering diverse liquidity solutions.

Deal drivers

APAC deal drivers include: (i) uneven digital innovation across industries, (ii) global supply chain disruption, (iii) rise/fall in raw material pricing, (iv) rapid manufacturing innovation, (v) long term aging demographics etc.?

Typical successor agent deals

APAC deals are hugely diverse: (i) a Shenzhen factory might need additional trade finance to overcome a cash timing mismatch, (ii) an Indonesian gold mine might need project finance to support mine development, (iii) a Singapore real estate developer night need to refi a short-term facility.

Fascinating debt

Distressed deals are arguably the most challenging given the diverse stakeholders matrix and complex reporting requirements.

Deals impact both equity and debtholders and even between debtholders there can be great diversity and complex conflicts of interests (ie. senior / junior loans, debt securities, hybrid instruments etc).

Successor agent role

We are typically engaged to act on the instructions of majority lenders and serve in an administrative capacity to facilitate: work-outs, restructurings or schemes of arrangement.

We enable lenders to: (i) exit from an unsatisfactory credit relationship, (ii) avoid perceived conflicts of interest, and (iii) take advantage of our various tech platforms to efficiently keep track of interest calcs, make payments and keep track of collateral.

Distressed debt data

Although interest might remain unpaid lenders/borrowers still need to: (i) keep track of outstanding sums, (ii) administer agreed collective action, (iii) arrange amendments / waivers etc, and (iv) satisfy information covenants.

As distressed debt opportunities multiply in APAC, the ability to consume and share powerful deal level data insights will continue to evolve as a key competitive advantage for distressed debt investors.