Since the beginnings of the credit crunch there has been an almost eerie calm on the corporate failures front. In fact this February saw the lowest point in defaults for five years. Could the underlying position be much better than everyone has been anticipating?
Sadly this is not so. The trough in defaults has actually been determined by the nature of the deals over the last two years before the credit crisis which relied very heavily on delayed repayment. In 2008 there will be £50bn due in amortised payments from these deals but by 2013 this is set to rise to £260bn and already 53% of these deals are underperforming their base case - the justification of their original refinancing.
What is more, analysts suggest that as many as 70% of all the companies that will have trouble paying their debts in the coming two or three years will be private equity-owned.
Yet if companies become distressed, there is more capital available to take advantage of them than in the past. Investors with a stomach for risk will be hoping that the debt of companies in distress falls below its fair value, enabling them to make a killing in any liquidation or subsequent sale or restructuring. The broad gamble they take is where the economy really is in the credit cycle, while the narrow one, different within each distressed company, is where the value breaks - that tranche of debt where it is apparent the company's ability to pay back its debt will cease.
Already, new situations are arising within the process, with the relationship between equity and debt shifting in complex rescue packages. On the other hand, sometimes the restructuring teams become so involved in the financial re-engineering they fail to see that a company is irrecoverable for operational reasons.
This conference brings together the top experts to examine both the latest challenges in corporate restructuring and the issues arising within the various types of distressed debt.
Attendance at this conference will be invaluable for all those involved in corporate restructurings including financial institutions (CEOs; directors and managers of special situations, corporate recovery, debt recovery, credit risk, distressed assets, distressed debt trading, high grade trading, problem loans; in-house counsel; treasurers; and analysts); the management of hedge funds, vulture funds, mezzanine funds and private equity funds; lawyers, accountants and turnaround specialists.
£995
$1957
€1255 
Close
