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1. Financial distress - borrowings.

A workout is an agreement between a lender and a financially distressed borrower to vary the terms of their original loan agreement, to allow the borrower to continue to trade and to avoid insolvency.

2. Financial distress.

More broadly, the management of the borrower's affairs during this period.

Scaled up workout teams
" An increase in insolvencies is inevitable...
Banks have been preparing for this wave, scaling up their restructuring and workout teams, and adapting their operating model to cope with a higher volume of customers in financial difficulty."
Serge Gwynne, partner at Oliver Wyman, The Treasurer Issue 2, June 2021, p9

See also