RT Journal Article
SR Electronic
T1 A Path for Optimizing Assets in the Midst of Market Change
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 19
OP 25
DO 10.3905/jsf.2003.320301
VO 9
IS 1
A1 David L. Patton
A1 Vincent D. Hahn
YR 2003
UL https://pm-research.com/content/9/1/19.abstract
AB As more and more energy project owners default on their debt obligations, project creditors are faced with the major task of managing the transfer of asset ownership and assuming the new role of owner. This transition is neither easy nor intuitive. However, it can be accomplished successfully, through the following process: 1) concurrently restructure the debt and determine short-, medium-, and long-term objectives; 2) determine the correct framework for the new project organization; 3) choose the team; and 4) optimize the asset. When faced with asset foreclosure and restructuring, creditors need to look beyond the short-term obstacles. With a carefully selected team and new agreements supporting them, and guided by a set of clear objectives that can be adapted as the market shifts, creditors can optimize their assets.