Fully integrated and all inclusive Workout Management services

Workout management

Reviva Capital integrates all three levels necessary for implementing successful and sustainable restructuring solutions. This enables us to maximize return at all levels; via operational and asset enhancement plans, legal & corporate strategies as well as capital restructuring solutions.

 

We provide workout management services under strategy driven, but non-discretionary mandates. This involves managing restructuring efforts and negotiations with counter-parties, preparing and implementing business plans, selecting and managing local advisers and staff as well as developing and executing divestment strategies.

Our services also include assuming operational responsibility, administration and control; involving credit administration, accounting and customised reporting for regulatory and internal purposes.

Our approach

Our work-out approach comprises of 5 key steps:

Our workout methods leading to value recovery might include:

  • Simplifying the corporate structure to enhance control and facilitate multiple exit strategies
  • Refinancing part or all of the current capital stack of the asset
  • Reviewing original legal documentation and/or corporate governance structure for inconsistencies and legal recourse abilities
  • Asset enhancement strategies (re-positioning / re-development)
  • Asset management strategies (operations)
  • Asset divestment strategies (packaging and exit)

Governance

Our services are normally governed by a single service level agreement between us and our customers. The term of the agreement is tailored to each situation. The mandates are typically non-discretionary, but strategy-driven, meaning that a steering committee, appointed by the customer, will be established to serve as the main decision-making body. The steering committee is supported by detailed proposals resulting from in-depth analysis provided by us. In between decisions, we manage all matters on day-to-day basis. A general workout strategy is set forth in the service level agreement and forms the basis of all actions.

Pricing

The main objective of our pricing structure is to ensure stability, predictability and sustainability at competitive levels while at the same time creating incentives to align interests. The fee structure accommodates asset categories with different recovery expectations by adjusting the base fee and the success fee. The base fee is linked to the nominal amounts of the loans under management, the asset categories and recovery expectations. The basis for calculating the base fee is reviewed periodically. A success fee becomes payable once targeted recovery is exceeded.