1. Loan Syndication
  2. Loans Syndication
  3. Syndication Restructure

1.12 Syndication Restructure

Syndication Restructure process enables the user to pay down the existing Drawdown under a specific Tranche and terminate the Tranche. Through the same process you can create a new Tranche with a difference in Lender allocation based on the amendment agreements received as part of the restructure process and book a new Drawdown under the newly created Tranche. All these activities can be handled through the single Syndication Restructure process.

The basic registration details for Restructure Process can be initiated using this Initiation screen, provided you have the required access rights.

To initiate Syndication Restructure Process

Specify the User ID and Password, and login to Homepage.

  1. On the Homepage, from Corporate Lending, under Operations, click Syndication.
  2. On the Syndication, click Syndication Restructure .
    The Syndication Restructure screen is displayed.
    Description of restructure.png follows
    Description of the illustration restructure.png

  3. In the Syndication Restructure screen, provide the required details.

    Table 1-143 Syndication Restructure

    Field Description
    Customer Number Select the Borrower for which the Loan amendment to be made.
    Business Product Click Search to view and select the required business product.
    Application Date Select an effective application date from the drop-down calendar. The system defaults the current system date as the application initiation date.
    Facility Details Select the applicable Facility listed upon selecting the Borrower
    Tranche Details Select the respective Tranche under the Facility
  4. Click Initiate to begin the process.

    The process flow for Syndication Restructure Process undergoes the below stages:

    1. Restructure Entry

      You can view the details of the Tranche which needs to be restructured and able to select the type of Restructure in this stage. You can fetch the available drawdowns and the selected Tranche and the restructure action as Liquidate and New Below Data Segment is used in this stage.

    2. Restructure Tranche

      Details of the selected Tranche can be viewed and select the action on the available draw down accordingly.

    3. Restructure Enrichment

      You can view the details of the existing Drawdown contract and Tranche contract in this stage. You can make pay down to the existing draw down and make amendment to the existing tranche by making necessary modification. Whatever modification made to the existing tranche details are considered as the data for the new tranche. You can capture the details of the new draw down to be booked under the newly created Tranche in this stage.

      Below Data Segments will be used in this stage.

      Loan Details

      You can view the details of the existing Drawdown contract and cannot edit any details.

      Payment Details

      You can view the outstanding under the existing loan under various components along with tax. You can capture the payment amount accordingly.

      Review Settlement Account

      You can park any of the component in to the suspense account using this data segment.

      Restructure party

      Existing Parties of the Tranche is defaulted in this data segment and you can make amendment to reflect in the new Tranche

      Tranche Details

      Details of the existing Tranche defaults in this data segment and you can amend the details to reflect in the new Tranche.

      Lender Commitments

      Participant share of the existing Tranche defaults in this data segment and you can amend the details to reflect in the new Tranche.

      Margin Details

      Details of the existing Tranche defaults in this data segment and you can amend the details to reflect in the new Tranche.

      Fee Details

      Details of the existing

      Tranche defaults in this data segment and you can amend the details to reflect in the new Tranche.

      Tranche Repayment Schedules

      Details of the existing Tranche defaults in this data segment and you can amend the details to reflect in the new Tranche.

      Additional Tranche Details

      Details of the existing Tranche defaults in this data segment and you can amend the details to reflect in the new Tranche.

      Margin and Schedules

      Details of the existing Tranche defaults in this data segment and you can amend the details to reflect in the new Tranche.

      Restructure Entity Details

      Details of the existing Tranche defaults in this data segment and user can amend the details to reflect in the new Tranche

      Restructure Settlement Details

      Details of the existing Tranche defaults in this data segment and user can amend the details to reflect in the new Tranche.

      Restructure Loan Details

      You can capture the details of the new loan to be booked under the new Tranche

      Additional Loan Details

      You can capture the details of the new loan to be booked under the new Tranche

      Interest margin Details

      User can capture the interest details of the new loan to be booked under the new Tranche

      Payment Schedules

      You can capture the Payment Schedules of the new loan to be booked under the new Tranche

      Sighting Funds Match Review

      You can reconcile and sight the expected payment from Borrower. Fund sighting can be either automatic through ML Process or manual.

      Below Data Segment is used in this stage.

      Match Sighting Fund

      You can view the expected amount details and match the receivable with the Funds sighted through ML process or manually.

    4. Restructure Approval

      You can review and approve all the details captured in the previous stages. If any corrections to be done in the data captured in Entry stage, you can send back the application to the Entry stage for correction. Upon approving the transaction, OBCLPM hands over all the information to OBCL. With this hand off OBCLPM can pay down the draw down in the existing Tranche and crate new Tranche in OBCL and book new drawdown under the newly created Tranche.

      Below Data Segment is used in this stage.

      Application Verification

      You can view the summary view of all the data segments used in the previous stages and able to verify the data by opening each summary tile.

Related Topics

Parent topic: Loans Syndication