Reorg Blog

The wave of hard financial restructurings expected in Europe in 2022 to rival the 2008/9 crisis appears to have been mistimed. As a result of cheap debt and fiscal support available since the Covid-19 pandemic, stressed debtors have been able to avoid insolvency or restructuring. In our 2022 European Restructuring Wrap, legal experts analyze the restructurings from 2022 and look ahead to 2023. Here’s a few key takeaways from 2022: Restructuring activity, defined by the occurrence of liability management exercises (LMEs), in 2022 has briefly returned to pre-pandemic levels, following a surge in 2020; (Source: Reorg’s Credit Cloud on Dec 31,...

Reorg's EMEA Middle Market team has published a Mid Market wrap that highlights debt capital markets, direct lending, debt and leverage data and more through 2022. This year, disruptions in the debt capital market helped shine a brighter light on the expanding potential for private debt. Despite economic headwinds and uncertainty for M&A, direct lenders have sustained dealmaking, adapting and seizing opportunities such as large cap deals, public-to-private transactions, refinancings and add-ons. “Direct lenders can provide higher visibility and certainty of execution without any caveats. Sponsors are now prioritizing such certainty over other elements that in the past were considered...

Reorg's recent high yield industry update included an analysis of companies’ exposure to floating-rate debt and near-term maturing debt, which indicates a high concentration of rising rate risk in a number of consumer and technology sectors. Sectors identified as having higher exposure that may potentially result in higher interest costs include: Consumer durables and apparelRetailingHealthcare equipment and suppliesSoftware and services This analysis was developed using Credit Cloud, newest data offering for leveraged finance and restructuring. Through Credit Cloud, Reorg has analyzed details on companies’ capital structures, including debt, cash and EBITDA, and then separated companies by sector using the Global...

What lies ahead in 2023 in Asian restructuring and where are the opportunities for investors? Asia’s high-yield market in 2022 was hit by multiple defaults in China’s real estate sector. “Three Red Lines”, frozen escrow accounts, follow-on LMEs, and opaque onshore restructuring processes, all contributed to substantial losses in Asian high-yield markets. But the world’s second-largest economy is now emerging from a three-year Covid lockdown, with the government hinting at business-friendly policies, and greater support for the property market. Will it stem fund outflows from the region? Will high-yield bond markets ever return to their previous size? What are the...

If you’re not already receiving Reorg on the Record, sign up here: https://reorg.com/resources/reorg-on-the-record/ Credit market participants enter 2023 after a tumultuous year that saw junk bond yields increase to almost 9% as the market continues adjusting to a higher rate environment. Reorg has invested in tools that will enable clients to analyze performing and distressed markets. OurCLO data set provides access to CLO information from almost 200 managers, which clients can use to screen for lending opportunities. For the cinema industry, drama is building off-screen, with London-based cinema operator Cineworld saying on Tuesday, Jan. 3, that neither the company nor its advisors have participated in...

Throughout the year, Reorg hosts webinars bringing together industry professionals to discuss themes in the performing, distressed, restructuring and post-reorg credit markets. Reorg's webinars cover topical credits and industry updates. They're produced by our reporters and analysts with selected external guests.Americas Webinars from 2022: Primary in the Eye of the Storm: Challenges and Opportunities in Leveraged Finance in a DownturnHot Topics in Crypto WinterWinter Came for Covid-Era Darlings? - Distress in Crypto and Tech Bausch's Remedies for Potential Patent Defeat & Creditor Angst Over B+L SpinPuerto Rico's Restructuring Endgame and BeyondRevlon - Chapter 11 Cases and Creditor DisputesCLO Considerations for Distressed InvestorsDiebold...