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Practice Drills: Evaluating a Distressed Debt Situation

A practice-first course for investors who already understand how distress and the IBC work and now want to evaluate a real situation themselves. Every lesson is a drill built on the kind of numbers you find in Indian annual reports, exchange filings, rating rationales and NCLT orders. You start by spotting stress early and rebuilding a company's debt schedule from the borrowings note. Then you drill liquidity runway, the maturity wall, coverage ratios and how much debt a business can actually carry. You map claims through the Section 53 waterfall, estimate going-concern and liquidation recovery, price a stressed NCD against its expected recovery and work through security receipt economics. You finish by building a probability-weighted scenario tree, computing creditor haircuts from a resolution plan and running a full evaluation of a stressed issuer from filings to a reasoned decision. Worksheet figures are illustrative; each drill shows you how to rerun it on live data.

Distressed DebtCredit AnalysisIBC and RecoveryStressed NCDsScenario Analysis

MODULES

4

DURATION

~2.6 hrs

TRACK

Value Investing

What You'll Master

Spot early distress signals in rating actions, default disclosures, promoter pledges and auditor remarks before the headlines

Rebuild a complete debt schedule from the borrowings note, separating secured, unsecured, short-term and long-term obligations

Measure liquidity runway and the maturity wall, and judge whether a company can refinance or will default

Compute interest coverage, net debt to EBITDA and DSCR, and size how much debt a business can sustainably carry

Map every class of claim through the Section 53 waterfall and estimate recovery on a going-concern and liquidation basis

Price a stressed NCD by comparing its quoted yield with its probability-weighted expected recovery

Read an NCLT resolution plan order, compute creditor haircuts and reach a reasoned buy, hold or avoid view on a stressed issuer

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: Setting Up the Drill

3 Lessons

How to Evaluate a Distressed Debt Situation: The Six-Question Framework10 min read

Drill: Reading Early Warning Signs in Rating Actions, Default Disclosures and Pledge Data11 min read

Drill: Rebuilding the Debt Schedule from the Borrowings Note12 min read

Chapter 2: Liquidity and Solvency Drills

3 Lessons

Drill: Measuring Liquidity Runway and the Maturity Wall12 min read

Drill: Interest Coverage, Net Debt to EBITDA and DSCR for a Stressed Borrower12 min read

Drill: Sizing Sustainable Debt and the Haircut a Restructuring Needs12 min read

Chapter 3: Recovery and Pricing Drills

4 Lessons

Drill: Mapping Claims Through the Section 53 Waterfall12 min read

Drill: Estimating Going-Concern and Liquidation Recovery12 min read

Drill: Pricing a Stressed NCD, Quoted Yield vs Expected Recovery12 min read

Drill: Security Receipt Economics and ARC Recovery Math12 min read

Chapter 4: From Analysis to a Decision

3 Lessons

Drill: Building a Probability-Weighted Recovery Scenario Tree12 min read

Drill: Reading an NCLT Resolution Plan Order and Computing Creditor Haircuts12 min read

Capstone Drill: Full Evaluation of a Stressed Issuer from Filings to Decision15 min read