 |
Carl Marks Advisory Group LLC Managing Director Kristina L. Anderson's recent article in the ABF Journal sheds light on the rationale behind the workout banker's decision-making process when dealing with a distressed borrower. Anderson explains what motivates workout bankers and how to best partner with the workout professional to get back on the road to financial recovery.
|
|
|
The experience of representing, advising or even banking companies that hit a bump in the road and get transferred to the bank's workout department is increasingly common in today's challenging economic environment. Most associated professionals–bankers, attorneys and advisors–likely have encountered this scenario at least once in the past few years.
Borrowers may have strong reactions to being moved to workout, as it sometimes comes across as an abrupt change in a bank's posture and behavior. Even seasoned professionals sometimes find themselves asking why the workout banker is interested in strategies that sometimes seem at odds with the borrower's financial challenges or might even come across as non-economic. How does one best partner with the workout department to successfully put a troubled client back on the road to financial health?
The fact that a workout banker's behavior actually is economically driven, both on an institutional and a personal level, might come as a surprise to many. Simply put, a workout banker's view of the economic world may not be congruent with that of their borrower, so developing an understanding of how a workout banker's world works can make the process easier for all parties involved.
Read the full article »» |
|
|
|
|
|
900 THIRD AVENUE, 33RD FLOOR | NEW YORK, NY 10022 | T (212) 909-8400 | F (212) 752-9753
336 MAIN STREET, P.O. BOX 1005 | BEDMINSTER, NJ 07921 | T (908) 234-2373 | F (908) 781-6210
1934 OLD GALLOWS RD, SUITE 502 | VIENNA, VA 22182 | T (703) 840-8370 | F (703) 848-2003
212 SOUTH TRYON STREET, SUITE 1270 | CHARLOTTE, NC 28281 | T (704) 714-1240 | F (704) 714-1241
|
