EMEA Restructuring Wrap 2023

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Reorg Data Shows 2023 Featured a Marked Change in Restructuring Trends Since 2022

Introduction

There has been a measurable uptick in restructuring activity in Western Europe over the last 11 months of 2023 compared with 2022, according to data collected by Reorg in the EMEA Restructuring Database (RXD), available on Credit Cloud.

Key Takeaways

• More Restructuring Deals in 2023 – During 2022, 29 debtors completed financial restructurings, compared with 47 that have completed so far in 2023 marking a large increase – there are currently still 34 ongoing restructurings in Western Europe as of Dec. 4, 2023.
• Half of Deals Conclude Consensually – 47% of “in restructuring” debtors in 2023 are pursuing out of court, consensual type restructurings, a figure which is similar to, the 53% implemented consensually during 2022; and the 52% implemented and closed consensually during 2023 so far.
• English Restructuring Tech Most Popular – During 2022 and 2023, just over half of deals in Western Europe the last 23 months used either a Scheme of Arrangement, Part 26A Restructuring Plan or a Company Voluntary Arrangement.
• More Debt for Equity Type Deals by Number in 2023: In 2022, just 27% of deals included a debt for equity exchange, compared with 34% of deals closed so far 2023.
• More New Money Deals Feature in Equitization in 2023: In 2023, where a debt-for-equity swap was implemented, 69% of deals also featured new money, whereas in 2022 only 14% of deals which included a debt for equity swap also featured new money.
• 2023 Sees Less in Court Equitisations: In 2023, 45% of debt for equity deals were concluded in court, compared with 62.5% of the same type of deal in 2022 which required court involvement.
• Amend & Extend Financial Restructuring Deals on the Increase: Just 17% of deals in 2022 featured an amend-and-extend transaction, compared with 40% in 2023.

Download the EMEA Restructuring Wrap 2023 now to stay informed and gain strategic insights into the evolving restructuring landscape.

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