| Summary: | 碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 98 === With companies becoming more globalized and capital-intensive, together with a more liberal and risk-diversified domestic capital market, domestic syndication has emerged as a main stream in past few years. However, we still see very few systematic introductions and in-depth researches on the framework and strategy of domestic syndication default collection. Regarding the various distinguishing quality of syndication default, we incorporated asset management concept to elaborate on the following topics, using recent major syndication defaults as examples.
1. Steps and strategies to take for creditor banks to alleviate loss and collect debt obligation after syndication default
2. Through case studies, we will breakdown the reasons causing default, pros and cons of different collection strategies and their feasibility
3. Listed items to be clarified regarding potential violation urges the principle before finalizing syndication terms
The conclusions are as follows:
1. If there is any third party or consortium would like to step in after the default of a syndication loan, we may choose normal collection procedure, capital raising, negotiation, or debt-equity swap to help borrower back to its regular operations. Otherwise we might seize the key chance of convincing the borrower or guarantor to repay debts as soon as possible.
2. The pros and the cons and the feasibilities of each collection strategy also vary with the financial strength, collateral, and the industry outlook of the borrower. It is still a better solution to adopt the usual collection process than the legal procedure of asset and loan auction, or bankruptcy clearing.
3. In order not to affect the timing of collection and debt assurance, we might set up more flexible plans about the latter part of the collection regarding syndication default, such as the exercise of voting right, sale of debt to non-financial business, and offsets the question from the profit, before we agree on the syndication terms.
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