- Globalization of Businesses Leads to More Cross Border Restructurings – With the increase in international businesses’ globalization comes an increase in cross border restructurings both inside and outside of courts. It has never been more important for businesses to have legal counsel with a presence in many international locations that understands the interplay between jurisdictions in the effort to reach commercially focused restructuring solutions.
- Nearly $6 Trillion Ready to be Invested – The market has its eye on this stockpile of cash currently sitting in money market and treasury funds. As borrowing costs are expected to fall, the available cash may be deployed into other asset classes to generate higher returns, possibly providing a boost to restructuring deals.
- Curtailing Rise of Interest Rates May Provide Stability for Parties’ Entry Into Existing Capital Structures – This may facilitate the increase in balance sheet restructurings.
- Continuation of the Growth of Private Credit – With an estimated $2 trillion in corporate debt coming due within the next two years, we are likely to see the further migration of loans to private credit. Converting bank loans to private credit has increasingly been the choice of many companies allowing them the opportunity to pursue creative financing structures. This may create greater competition for assets.
- Office Real Estate Continues to be Challenged – The workout trend for office real estate is expected to continue as the sector struggles with overbuilding and over-leverage in certain markets. Even as more people return to offices, the absorption rate is not likely to fully utilize existing inventory in certain markets.
About the Authors:
Greenberg Traurig, LLP’s internationally recognized Restructuring & Bankruptcy Practice provides clients with deep insight and knowledge acquired over decades of advisory and litigation experience. The group has a broad and diverse range of experience developing creative and effective strategies to address the highly complex issues that arise in connection with in- and out-of-court reorganizations, restructurings, workouts, liquidations, and distressed acquisitions and sales, both domestically and in cross-border proceedings. With offices in commercial centers across the United States and throughout the world, we utilize our invaluable business network to offer critical advice and counsel to multiple constituencies in numerous insolvency situations.