Nishat is the Principal of Restructuring and Special Situations at Capital One. Based out of New York, her main role is to oversee both asset management and restructuring and downturn preparedness for her portfolio. Relying on both her education and background in financial analysis, Nishat’s overall goal is the mitigation of loss exposure for the bank.
Transcript
Nishod Jubean, principal at Capital One's restructuring, turnaround, and special situations group. If I had to say what my role is, I would break it down into three different parts. So as I mentioned that I am within the restructuring group and it is a special situation, also known as a special assets group. The team will not get involved unless there's a crisis or some kind of potential loss to the bank's commercial portfolio. And, so, i.e. crisis manager at its finest. So when we do get involved it will be work in three different parts. So one. So say a company is going into a distress situation and have not met their, have not met their markers, the special assets team will come in to see what is the best way to make sure that this distress situation of this portfolio company doesn't hit our balance, or our loss. And what makes the most sense. What kind of, the kind of financial analysis that we have to do. Should we exit the deal? Should we restructure the debt? And just to make sure that it doesn't hit our bottom line. The other one third would be, say our portfolio company has gotten into a very bad distress situation. For an example of bankruptcy or would have you where we probably won't be able to recover our entire debt that we have. And we will probably hold a secured lender position on that company. And that would be seeing how do we mitigate this loss, or minimize it and run them, run the recovery analysis just to make sure we can maximize it. And then the other third would be more so on the review standpoint. Where we review the portfolio or entire commercial landing portfolio to see any industry markers and company markers where if a company probably is in distress, but might come under our belt. So making sure we are mitigating that risk as well. So for Capital One's, like a lendee for us, have they met all their ebitda. What's their operational performances looking like? Have they been making proper loans? But on the other side for an operational company, they will look at if their liquidity position, their cash position is doing so well. So mostly on the financial side and see whether they're checking off the financial metrics that they themselves put in place.
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