GPA Capital Offers Workout Support for Oil & Gas Producers
Our petroleum specialists have well over 100 years of combined industry and management experience covering a broad range of areas in the petroleum industry. Combined with the principals' business expertise, we are equipped to develop and execute a viable strategy to recover the client bank's depositors' capital with little to no financial loss.
Everything Hinges on the Team
Banks are reevaluating their staffing of workout teams in anticipation of a potential increase in troubled loans. Because of the struggle to find staff for this, there's a need for our services. The GPA Capital team comprises a petroleum engineer, oil field services professional, geologist and seasoned O&G accounting and back-office staff.
According to a recent statement from Risk Management Associates (RMA), "Waiting until portfolios are distressed to find workout officers is a mistake." According to Nina Ross, the head of the asset restructuring and recovery management group for the Americas at Société Générale, the task was, "You’ve got to figure it out... Great workout officers are driven by a strong desire to understand the problem and fix it.”
Recapture Defaulted O&G Loan Capital
The partnership with our bank/client is critical once the team is convened.
We then immediately begin working with our clients, using all resources at our disposal.
- Negotiation Flexibility: Lenders may allow for alterations in terms, such as reducing the interest rate, extending the loan duration, or temporarily lowering monthly payments.
- Loan Modifications: Changing the original terms of the loan.
- Forbearance Agreements: Temporary pauses or reductions in payments.
- Repayment Plans: Structured payment plans to catch up on missed payments.
- Documents Required: Borrowers will need to provide financial documents such as income statements and tax returns. We need to begin operations once we stabilize product demand and the market.
- Lender's Willingness: The willingness of a lender to enter a workout agreement can depend on their assessment of the borrower's ability to recover financially and the overall risks associated with the loan.