On the latest episode of Debtwire's Debtwired!! podcast series, White & Case Financial Restructuring & Insolvency partner David Turetsky examines several key trends in the restructuring market, including lender-on-lender tension and rescue financing in response to the cryptocurrency collapse.
In the episode, Turetsky highlights five industries that he believes will become a hotbed for restructuring activity, including the real estate, healthcare, automotive, retail and aerospace sectors, noting the impact of the pandemic as well as supply chain and labor shortage issues.
Turetsky notes: "To the extent that companies do experience distress, it is my experience that the sooner companies begin to address that distress, the more likely it is that they will be able to preserve value and the more likely that this value will extend to more junior constituencies."
He states, "The converse is also true. The longer that companies wait, the more difficult it is to turn things around, and the more likely that the fulcrum will fall within the more senior side of the capital structure." Though, he says, "Of course, these are all general observations – the particular circumstances that a company faces will always inform the options that it has and when it has them."
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