Bank Restructuring - European Resolution Capital

European Resolution Capital is Europe’s leading bank restructuring advisor, assisting financial institutions dealing with problematic/non-core credit and asset exposures and managing their resolution.

 

At times of rapid value erosion and extreme market volatility, ERC provides European banks with a full range of services based on credit analysis and risk management to achieve their goals 

  • Reassert control over opaque loan and asset exposures
  • Accelerate exits and liquidity generation from unwanted risks
  • Release capital and management resources
  • Protect the core bank’s franchise value


Fundamental credit risk analysis and long-term capital preservation are at the core of ERC’s activities 

  • ERC provides in-depth single name and portfolio assessment, based on which problematic loan perimeters that pose a threat to the bank’s standing and require specialist workout expertise are identified
  • Portfolio restructuring and wind-down strategies for the orderly exit of unwanted problematic and noncore areas are implemented, with the goal of expedite completion and maximum liquidity generation
  • Wherever necessary, internal restructuring units (IRUs) are established, or ERC helps reconfigure existing units around portfolios

 
ERC designs, establishes and manages ‘good/bad bank’ solutions

  • Determining the implications to strategy that result from the capital and governance trade-offs implied by portfolio separation, as well as regulatory, legal, accounting, capital and tax complexities
  • Optimising existing processes, policies, tools, systems and structures based on the portfolio’s value drivers and risk profile
  • Depending on circumstances, we reconfigure or help establish new appropriate organizations. These can range from enhanced work-out teams, internal restructuring units, independent entities as well as asset management vehicles

 
We do not just advise – we implement

  • ERC’s approach is one of partnership with its client’s management teams for the successful identification, structuring and resolution of problematic loan and asset books
  • ERC negotiates with borrowers and lender syndicates, trade unwanted exposures and hard asset portfolios, configure and run world-class credit resolution and asset remarketing platforms
  • ERC can take interim management and co-management roles, as required. We can provide targeted support to management, lead single case negotiations, undertake discrete project management tasks, assume full management responsibility on an interim basis and have taken roles as members of credit committees