Debt Restructuring would play a key role in the 12-24 months as COVID-19 continues to create uncertainty on a global scale across all businesses. The overall lack of clarity surrounding how to rapidly access newly developing policies and government intervention programs designed to restore economic stability has led to a broad sense of uncertainty, if not anxiety among many businesses.
We believe many large scale infrastructure businesses would be adversely impacted by the outbreak of COVID-19, whether due to government-ordered closures, mandatory and voluntary quarantines, social distancing, workforce reductions, supply-chain shortages or other issues. These factors would have currently impacted or may impact borrowers and their debt service obligations. As a result, commercial borrowers are already, or will shortly be, defaulting on debt service payments and loan covenants.
Lenders in the next 12 months would be facing a cascade of distressed credit facilities resulting from the economic fall-out from the COVID-19 pandemic will need to engage with “Borrowers” at all stages of workouts, from preliminary discussions through the negotiation and preparation of debt restructuring programmes. Brickstone Africa has set up a COVID-19 Loan Workout team and is readily available to help provide borrowers through the trying times. The Debt workout Programme is a special service where we provided Capacity Building and Action-Oriented Advisory Service from preliminary discussions through the negotiation and preparation of loan work programmes.
However, before we onboard clients on the Debt Workout Programme, Brickstone is willing to provide a Free “Post Covid-19 Debt Sustainability Assessment” via a 1 hour-online conference call in a confidential discrete manner to at least 50 businesses/projects (with corporate and project finance loans) loans with African Banks. This is part of our COVID-19 Corporate Social Responsibility initiative to Large Scale businesses in Infrastructure and Industries that meet the following criteria