Opening panel: Current state of the US restructuring market
The 2023 North American outlook began with negative sentiment and low expectations for the domestic economy with a predicted recession, high inflation and the highest interest rates in 15 years. 2022 was not a standout year for restructurings, but a flurry of activity in the last month of the year saw bankruptcy filings increase in December. According to data from Debtwire’s Restructuring Database restructuring activity has continued into 2023 with a 36% uptick in bankruptcies in the first half of 2023 with 143 cases filed compared to 105 filed during the same period in 2022. Panellists will discuss the key issues affecting North American restructuring including:
- How are sponsor-backed companies facing challenging economic headwinds and how are sponsors defending investments to avoid a Chapter 11 filing?
- What will the longer-term impacts of high inflation be for leveraged borrowers? What is the current state of global tax planning and how can tax be a material contributor within restructurings both in and outside of court?
- Debt exchanges, distressed debt buybacks, asset dropdown transactions with unrestricted subsidiaries, non-pro rata capital raises, equity cures and negotiated covenants – how are creditors reacting to these manoeuvrers to avoid bankruptcies?
- Where do panellists see future restructuring activity? Will SPACs generate more bankruptcies in 2024?
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