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With a sharp global increase in energy costs, localised
inflation at record highs and interest rates trying to offer some
counterbalance to the soaring costs of living driven by the
increases in prices of goods and services, many companies will now,
literally, struggle to keep the lights on, so an increase of
insolvent restructuring is inevitable to some degree.
However, emergence into the world's "new normal"
during this late stage of the pandemic will see some businesses
turning keener focus to long-term sustainability, good governance
and management, structural rationalisation and a drive for cost
efficiencies. We should see larger volumes of non-contentious
restructuring as a result, whether through private equity-backed
takeovers, bond or debt restructurings and/or intricate internal
reorganisations, all of which we are starting to see in the
market.
