TOOL I1
| Review Scope of Analysis Credit Base Conclusion | – Where are the gaps in the risk grid? – Which natural mitigants are we relying on? – Which business development opportunities do we need to lock in? |
| Structure Risk What additional structures risks should be added to the risk grid? | – What is the position of present and future stakeholders re claims on key assets, cashflows and contracts? – Are there any cross border risks? – Does the proposed deal structure increase risk? |
| Mitigation How much can we expect? Consider level of risk / negotiating power / commercial benefit to the client, market practice | Prioritise ‒ gaps in the risk grid and natural mitigants on which we are relying ‒ cashflows, assets and contracts to be controlled to mitigate the gaps identified above. |
| Direct Control | The Bank has the power on default to ‒ use cash to reduce debt immediately ‒ realise assets quickly (3-6 months?) and then use cash to reduce debt immediately ‒ complete the contract and / or realise liquidated damages into cash and then use cash to reduce debt immediately Options include collateral, assignment of contracts, transactional control, escrow accounts To what extent does the proposed structure provide the desired level of direct control? |
