• Investment Banking
  • Mergers & Acquisitions
  • Financings
  • Capital Structure Optimization
  • Exit & Transaction Planning
• Financial Advisory
  • Valuations
  • Fairness & Solvency Opinions
  • Board Advisory
  • Dispute Services
• Restructuring Advisory
  • Loan Workouts & Debt Restructurings
  • Distressed Asset & Company Sales
  • Special Situations
• Wealth Advisory
  • Portfolio Analytics
  • Suitability Recommendations
  • Portfolio Monitoring

Loan Workouts and Debt Restructurings

In our view, the financial crisis of the past couple years has fundamentally changed the creditor and debtor relationship. Five years ago it was virtually all about “how much can I borrow” and “how much can I lend”. Competition commoditized credit in a way that yielded the following results:

• • Covenant light (to non-existing) loans that neither protected the lender nor provided for sensible internal management guidance for operating a business
  • Over-leveraged borrowers with little ability to meet their debt obligations in anything but the best economic times
  • Equity risk with debt pricing
  • A disintermediation of borrowers and lenders that failed to create a relationship and a track record of honest and open communication to fall back on when the inevitable downturn occurred
• • Looking for capital?

We believe that long-term, old style relationship banking is what both borrowers and lenders want and need. The challenge for distressed borrowers and their lenders, however, is how to get there. Many borrowers are faced with crippling debt obligations that cannot be met and most lenders are faced with internal or external pressures surrounding their capital requirements. We believe the only solution is an honest and ego and emotion free dialogue that outlines the alternatives to a way forward with a realistic time table for achieving an acceptable outcome. HighBank helps facilitate this discussion and promotes realistic solutions by:

• Analyzing and valuing a borrower's existing assets and liabilities
• Formulating a debt restructuring or asset divestment proposal to address the immediate issues affecting the borrower
• Developing a longer-term plan that will result in an acceptable resolution for both the lender and the borrower

Our focus is on the objectives of the borrower and the lender, the results that can be attained, and the time frame over which these results can be expected.

We believe it's time for higher standards and results. Don't you?

Welcome to HighBank Separating Knowledge from Beliefs

To obtain a free copy of our Long Term Economic Thesis and Investment Outlook please email us at: knowledge@highbank.com