Restructuring Of (Re) Insurers During Covid-19

First published in The Royal Gazette, Legally Speaking, May 2022

Restructuring involves changing the financial, operational, legal or other structures of a business to make it more efficient and more profitable.

It is not a "one size fits all" process.

Today, in the time of Covid-19, there are a lot of distressed businesses. Their stability has been impacted by a variety of factors, including staff under quarantine, a failing supply chain, unavailable inventories and sudden reductions in demand from customers.

Companies have faced poor trading and additional financing requirements.

Of course, restructuring is not limited to distressed companies.

Businesses often turn to restructuring when a need for change has been highlighted. While this could be down to financial reasons, it could also be based on macro and micro-economic factors which have the potential to change the way a company does business including political issues, or global pandemics.