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SmithNovak Restructuring and Insolvency Conference
Vienna, December 2014
Bankers, Lawyers and Consultants
How to best serv...
The BANKER = grants the money
= expects to get them back...
= raises early warning signs
= may pull the trigger anytime......
CULTURAL DIVERSITY = investor profiles
MACROECONOMY = strategic industries, equity & financing,
technical & managerial kno...
Do not opt for cheap Consultants under complex situations
Do not underestimate the need for local competence
Do not be afr...
... Competence -> Credibility -> TRUST
... Objectivity -> Confidentiality vs. Transparency -> DISCLOSURE
... Curiosity -> ...
Common sense – an empirical definition
| P.6
WILL = aligned interest (Why?)
MEANS = resources (Who? With What? When? Where?)
EXPECTATION = common sense -> feasibility
...
In the end, the distressed Customer should...
... Still have a business
... Still have a Banker
... Keep using the Lawyer ...
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Georgina Popescu: What can bankers, lawyers and consultants all learn from each other and how can the best interests of the distressed client company be served?

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• Common sense – an empirical definition
• Success as a function of expectation, resource, courage and fairness
• Who comes in first – the Banker, the Lawyer or the Consultant?
• Who is the last one standing – do we still have a Business?

Published in: Economy & Finance
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Georgina Popescu: What can bankers, lawyers and consultants all learn from each other and how can the best interests of the distressed client company be served?

  1. 1. SmithNovak Restructuring and Insolvency Conference Vienna, December 2014 Bankers, Lawyers and Consultants How to best serve a Distressed Customer Georgina Popescu Executive Director - Special Credit Management BRD - Groupe Societe Generale (Romania)
  2. 2. The BANKER = grants the money = expects to get them back... = raises early warning signs = may pull the trigger anytime... The CONSULTANT = knows what ‘others’ do = makes promises ... and disclaimers = approaches in accordance with scope of works Who comes in first? | = approaches in accordance with scope of works = speaks a ‘common’ language = big ones have a reputation to protect The LAWYER = offers legal solutions for business requirements = explores legal risks and alternatives = always advises, never decides SUCCESS FEE?... = SURVIVING DISTRESSED CUSTOMER! P.2
  3. 3. CULTURAL DIVERSITY = investor profiles MACROECONOMY = strategic industries, equity & financing, technical & managerial know-how POLITICS = torn between East and West LEGAL FRAMEWORK = theory vs. practice REGIONAL SPECIFICS | LEGAL FRAMEWORK = theory vs. practice COMMUNICATION = business understanding POWER BALANCE = win - win?... Depends on the players ... P.3
  4. 4. Do not opt for cheap Consultants under complex situations Do not underestimate the need for local competence Do not be afraid to break the ice (especially when thin...) Do not restructure business you do not understand Do not ‘save’ Customers against their will Do not stay in business with crooks A Banker approach to a Distressed situation | Do not stay in business with crooks Secure preferential access to collateral, ring-fence the cash-flow Always go well prepared and bring senior staff to negotiate complex cases Do not over-complicate structures which you cannot control Always elaborate scenarios and prepare for alternatives Do not be shy to call it a day! P.4
  5. 5. ... Competence -> Credibility -> TRUST ... Objectivity -> Confidentiality vs. Transparency -> DISCLOSURE ... Curiosity -> Learning -> UNDERSTANDING ... Interest -> Flexibility -> BALANCE ... Opportunity -> Negotiation -> SOLLUTION ... Responsibility -> Decision -> CONSEQUENCE Building Relationship - Banker, Consultant, Lawyer | ... Responsibility -> Decision -> CONSEQUENCE ... COMMON SENSE ... P.5
  6. 6. Common sense – an empirical definition | P.6
  7. 7. WILL = aligned interest (Why?) MEANS = resources (Who? With What? When? Where?) EXPECTATION = common sense -> feasibility FAIRNESS = openness, communication COMMITMENT = all involved How to get to SUCCESS? | P.7
  8. 8. In the end, the distressed Customer should... ... Still have a business ... Still have a Banker ... Keep using the Lawyer (for normal business!) Last one standing – do we still have a business? | ... Pay the Consultant ... Incorporate the learning from the whole process P.8

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