We're still seeing record levels of deal activity but with
growing stress across the supply chain. With Government support
measures disappearing and inflationary pressures beginning to bite,
many funds will be looking at their portfolios and considering some
of their more distressed assets.
Legislative changes have reshaped the restructuring toolkit. The
Government's intention was for these reforms to improve the
restructuring regime in the UK and help to further facilitate
business turnarounds. But, do they offer new ways to gain
competitive advantage and enhance shareholder value?
So far a combination of fiscal intervention, legislative change
and ready access to equity and debt markets, wholesale distress has
largely been avoided. However, rental arrears alone are
£7billion and over £74 billion has been raised in debt
by UK businesses. Many of these businesses will struggle to repay
these liabilities in the near to medium term. So, while the
restructuring
