Extracting Value

What trends are driving restructuring, distressed transactions, and deal activity in your jurisdiction?

In the Democratic Republic of Congo, restructuring and distressed deal activity are being shaped by two apparently opposite forces: resilient growth and heightened risk. The mining economy continues to attract capital, particularly in copper, cobalt, energy, logistics and infrastructure. At the same time, the concentration of growth in extractive industries exposes companies to commodity-price cycles, export measures, foreign-exchange pressures, supply-chain disruption and the security situation in the eastern provinces. For investors, this creates both distress and opportunity. Businesses that are fundamentally viable may become stressed because their revenue is delayed, their inputs are imported, or their regulatory assumptions change faster than their financing documents.