Venezuela is one of the richest countries in Latin America and has the world’s largest oil reserves. But it also has too much debt, severe corruption, and related economic, political, and social problems. What unfolds there will make it a top restructuring story in 2018 and beyond. Venezuela’s...
Historically low interest rates resulting from quantitative easing in the developed markets have afforded relatively easy access to capital, making it possible for distressed companies around the globe to refinance rather than restructure as capital markets continue to flow. In China, bank capital...
As part of the political project Pacto por México , the Mexican executive branch signed 13 initiatives in May 2013 that derogated and amended provisions of 34 laws. The financial reform amendments became effective in January 2014. As part of the financial reform, some amendments that cover...
It is almost a cliché in business circles that the numbers of formal insolvencies start to increase when an economy is coming out of recession. However, since the 2008 financial crash, the numbers of formal insolvencies have been declining. Initially, perhaps, this was because many companies were...
Restructuring professionals welcome change in the economic order of things. Failed managements’ reactions to change provides increased turnaround opportunities. Companies are forced to adjust to structural change and need professional advice in doing so. With the new U.S. president threatening to...
Japan, Buyout, Operational Improvement, JCR
At least up until now, the Japanese buyout market has disappointed many market players in terms of market volume, which, according to Asia Private Equity Review, was $3.6 billion in 2016. This is a 69 percent decrease from 2008 and represents less than 0.1 percent of the nation’s gross domestic...
Directors of Australian companies face some of the world's harshest penalties for continuing to trade a company while that company is insolvent. 1 These penalties include civil liability of up to AU$200,000 (more than US$150,000), unlimited compensation penalties, and even criminal charges carrying...
Canada, Oil & Gas, Cross-Border
In Redwater Energy Corporation (Re) , the Court of Queen's Bench of Alberta held that certain sections of the Oil and Gas Conservation Act (Alberta) and Pipeline Act (Alberta) are inoperative to the extent that they are used by the Alberta Energy Regulator (AER) to prevent the abandonment or...
Failing to Protect Security Interests in Australia Can Be Costly
The recent New South Wales Supreme Court decision in Forge Group Power Pty Limited (in liquidation)(receivers and managers appointed) v. General Electric International Inc. [2016] NSWSC 52 clarifies two key issues concerning the scope of Australia’s Personal Property Securities Act 2009 (Cth) and...
Brexit, Restructuring
Contrary to polls and the odds at the bookmakers, the U.K. in June voted to leave the European Union (EU). An avalanche of political change swiftly followed, resulting, as this is written, in a new Conservative prime minister, Theresa May, and a fight for the leadership of the Labour Party. The...