Rising distress in private credit – Managing transformation and restructurings
Private credit has become a defining force in today’s special situations, increasingly stepping in where traditional banks retrench, to provide flexible, fast and higher capital solutions. But as the asset class expands, its heavy concentration in software and SaaS lending is amplifying the scale and complexity of current restructuring cycles. As a result, private credit funds are taking a more hands-on approach to restructurings, often driving out‑of‑court solutions and, at times, pursuing loan‑to‑own strategies with their influence on outcomes growing. This panel will explore:
- How are private credit funds positioning themselves to play a larger role in restructurings?
- Will rising defaults will lead to more active control or “key taking”?
- Which strategies are private credit funds using—PIK, deferred payments, control mechanisms—to manage and influence restructuring processes?
- Will the more complex multi-party structures that include private credit result in more creative out-of-court solutions or even drive restructurings through court?
Speakers
Normalisation or a new restructuring cycle?
Evolving dynamics in private credit restructurings
Vintage deals, default risk, and the AI question
Discipline in private lending
Private credit as the fulcrum in European restructurings
Identifying opportunity in stressed credits
The first 30 days: stabilising a distressed situation
Proximity to management and lender control
Keeping rescue financing credible
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Aurelio is a Managing Director at Kroll and co-leads the firm’s European & LATAM Restructuring practices.
Aurelio brings a solid track record advising in complex cross-border international restructurings and leading significant financial advisory engagements for debtors and creditors of large global corporations. Aurelio’s industry recognitions include TMA’s International Company Turnaround/Transaction of the Year in 2023 and Top 25 Restructuring Consulting Advisors in the United States by Global M&A.
Prior to joining Kroll, Aurelio was Senior Managing Director and Head of Latin America for Riveron RTS. Before that, Aurelio was Senior Managing Director and led the Corporate Finance Practice in Spain for FTI Consulting. Previously, he was head of Alvarez & Marsal’s restructuring practice in Spain. Over his career, Aurelio has been involved in advisory roles for over €140 billion of restructured debt.
Relevant Examples of Experience
- Appointed by a large European conglomerate as leading board member to accelerate the divestment plan for their international operations, including dissolution and liquidation of the subsidiary companies; sale of assets and shares in subsidiaries and management of litigation in various jurisdictions in Latin America and Europe.
- Board Member and Chief Transformation Officer of a controlled-temperature logistics group operating in Portugal and Spain.
- Served as Chief Restructuring Officer for a subsidiary of Telefonica España which filed for an insolvency proceeding in February 2025 with total liabilities of over €1.3bn and was subsequently sold to a new operator.
- Led the team retained as Financial Advisor and CRO of Mercon Coffee Corporation, a Dutch global coffee producer and trader with operations in Brazil, Ethiopia, Guatemala, Netherlands, Nicaragua, US and Vietnam with net debt of €400mn, which filed for Chapter 11 in 2023, followed by a Brazilian RJ and a Dutch WOHA filings.
- For over 10 years led the team advising the Commonwealth of Puerto Rico within their bankruptcy including over €110bn in total liabilities, providing treasury and budget support and financial and cash planning for the central government and over fifty-one state-owned entities.
- Was Independent Board Member of Automotores Gildemeister, a multinational car dealership with €900mn in revenues and €600 million in total liabilities.
- Led the team advising the official Unsecured Creditors Committee in the Chapter 11 proceedings of LATAM Airlines, Latin America's largest airline with total debt of €20bn and operations in Argentina, Chile, Brazil, Colombia, Peru, U.S. and Europe.
- Was Chief Restructuring Advisor for Grupo Gallardo, a Spanish manufacturing conglomerate producing rebar steel, paper, and cement, with revenues of €1.3bn and debt of €1bn across seventy legal entities in Europe.
- Was appointed Board Commissioner by the creditors of a UK global printing and business services group with sales of €260mn, assessing the groups’ governance and solvency and determining the sustainable debt.
Florian is focused on European non-control distressed corporate debt situations with an emphasis on distressed and stressed credits in the German speaking markets. He is involved in all aspects of the investment process from origination and research to structuring and execution.
Florian has over 20 years of relevant experience across a broad range of industries including chemicals, building materials and general industrials. He spent the majority of his working life in European distressed debt investing but also has experience in principal investing and management consulting.
Prior to joining Bayside in 2020, Florian spent 14 years at Strategic Value Partners, a distressed and deep-value investment firm, where he was a Managing Director. Prior to this, Florian was an Associate Director at Carlyle Group Private Equity and a Senior Associate at McKinsey & Company.Florian earned a German law degree from the University of Hamburg and an M.B.A. from Harvard Business School.
David joined Permira Credit in June 2015 as Head of Private Credit. In December 2023, David was named Co-Head of the business, where he holds the position of overseeing the direct lending and strategic opportunities strategies. He serves as a member of the Investment Committee for the direct lending and strategic opportunity funds, as well as a member of the Permira Credit Executive Committee.
David has 27 years of European credit experience. Prior to joining Permira Credit, he was Managing Director at Barings (formerly Babson Capital), where he was responsible for sourcing and transacting opportunities and was a member of the private debt investment committee. Before that, David worked at UBS in Leveraged Finance and Financial Sponsors coverage.
Mahir Quraishi is a Managing Director in Rothschild & Co’s Restructuring and Liability Management team in London. He joined the firm in 2010 and has extensive experience advising companies and stakeholders on complex capital structures, cross-border restructurings and liability management transactions.
He spent three years in Rothschild & Co’s New York Restructuring and Liability Management team from 2014 to 2017, and has since worked on a range of transatlantic transactions, including Chapter 11 restructurings, following his return to London.
Céline Domenget-Morin co-heads the Paris Restructuring department.
She specializes in guiding distressed corporations, as well as their shareholders and creditors, through judicial or out-of-court restructurings. She also provides knowledgeable, value-driven advice to investors seeking opportunities, including in distressed businesses.
Céline draws on her broad experience in French and European restructuring and insolvency law to handle complex out-of-court (mandat ad hoc and conciliation) and insolvency proceedings (safeguard, accelerated safeguard, and bankruptcy).
Céline has also significant experience in distressed M&A and insolvency proceedings litigation.
Prior to joining Weil, Céline was a partner at a large global law firm where was head of the Paris Restructuring team.
Céline is fluent in French and English.
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