Gloomy economic forecasts and a looming debt wall for
FY17, bubbles within segments of the property and construction
markets, higher banking capital to cover risk and an emphasis on
safe harbour reforms for directors will see more corporate
restructurings in the coming year. We consider here how plans are
developed and how to judge their success.
Setting the scene
Companies are increasingly stripping away costs, reducing
workforces, limiting the hours or changing the rosters of
workforces and renegotiating downwards the pricing in supplier and
contractor arrangements. The combination of pessimistic economic
prospects, greater uncertainty about lending and the need for
companies to have more equity, means that market players are
drawing up restructuring plans and thinking about how they are
going to implement them.
