Highlighting the opportunities in Italian restructuring

Palazzo Parigi
21 May, 2019
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  • 08:30

    Registration and Breakfast

  • 09:00
  • 09:05

    Panel: Upside and challenges for distressed investors in the Italian market

    Over the past couple of years, an increasing number of distressed players have been investing in the Italian market. The provision of new money - most likely rescue financing under court supervision - has been the preferred route, while the funds have struggled in other situations to implement a full restructuring plan and take over the company. Buysiders will share their view on the Italian market, as well as the latest round of changes to the insolvency law. 

    • What are the main challenges that buysiders face when investing in Italy?
    • What is the upside and the long-term plan for the companies they are investing in?
    • What are the main changes introduced to the insolvency law, and what still needs to be addressed?
    • What’s the impact of cov-lite and lack of triggers for distressed investors?
  • 09:45

    Fireside chat: What's next in the distressed landscape?

    In a recent bull market, new financing packages have been featuring looser covenants and aggressive pitches in terms of pricing for platinum borrowers as well as a certain degree of resilience in giving access to new financing for mid-size businesses. In a market which may turn into a new recession, this may bring consequences on the quality and magnitude of the impaired credits. Fedele Pascuzzi, Claudio Battistella and Nino Lombardo will discuss what we may expect in the near future and the new market trends.

  • 10:15

    Q&A: Case study on a UTP deal, Unicredit’s Sandokan

    UTP exposures were EUR 86bn in Italy in 2018, according to PwC. “The UTP market, yet in an early stage, and quite limited in terms of volumes and number of transactions, should be the next challenge and opportunity for the Italian banks. Single names and small portfolio transactions, featuring the UTP market, could proceed together with or make way for new innovative deleverage structured solutions,” PwC stated.

    The Q&A will focus on a specific UTP case with an investor explaining the process.

    • What are the main differences in bidding for a UTP portfolio compared to an NPL portfolio?
    • What is the approach to manage it?
    • What makes an investment successful?
  • 10:35

    Networking Break

  • 11:10

    Keynote: NPL from systemic risk to potentially appealing asset class

    The keynote will go back to the origins of Italian banking crisis, explaining how the market players have been able to react and how they can face new challenges and opportunities

  • 11:30

    Panel: The construction sector woes, with no end in sight

    Construction remains the most troubled sector in Italy, with the list of companies involved in a restructuring process getting longer and longer. In addition, the suspension and/or postponement of new infrastructure investments has been recently announced, which will not help the recovery of the sector. 

    Against this backdrop, Italian main stressed and distressed companies remain under observation by international investors, who are interested in the potential value of some of their assets such as the claims, an important asset class in the construction industry that often is only marginally reflected in the financial statements and with a cash profile hard to be assessed. 

    Panellists will provide their perspective on the sector and where it is in the cycle. Advisors will present their opinions on challenges of the restructuring process and the consolidation prospects consolidation within the sector.

    In addition, a specialist investor will be invited to comment on their interest in financing construction claims and main issues to be addressed in structuring transactions based on the peculiarities of this asset class.

    • What is the outlook for the sector, and how likely is a much-needed consolidation of the industry, in the face of the ongoing talks between Astaldi and Salini Impregilo?
    • Construction claims: is this the new target for distressed investors?
    • Management and governance: is the Italian market still trailing behind when it comes to address governance issues, and how is management of companies under restructuring coping with the in-court processes?
    Salvatore Lombardo
    Salvatore Lombardo
    Partner, PwC
  • 12:10

    GACS: Who is buying? Who will end up paying for it?

    (This panel will be in English)

    In 2018, almost half of Italian NPL disposals by gross book value involved the GACS scheme, 14 deals worth almost EUR 44.8bn GBV of disposals. Most banks have decided to retain the senior notes, guaranteed by the states. The scheme seems has been working in terms of allowing banks to dispose of a massive amount on NPLs, but the actual performances are yet to be proved. 

    The panel will address how the scheme is working, who the buyers are and what the performances are so far.

    • How is securitization performing?
    • What are the possible risks on the state if the guarantee scheme has to become effective?
    • Can the system work for another type of loans such as UTPs and in other jurisdictions? 
  • 12:55

    Closing Remarks and Networking Lunch

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