27 Jun 2022

State of Play: Distressed Investing Trends

The Australian market has created a perfect storm for both distressed companies seeking capital and the growing number of investors or funders looking for the next distressed investment opportunity.

 

In our three-part video series on Distressed Investing Trends, our restructuring and insolvency partners, Timothy Sackar and Orla McCoy sit down with Houlihan Lokey's Financial Restructuring Group Australian Managing Director, Jim McKnight to explore the themes and trends in the Australian distressed market and expectations for 2022 and beyond.

 

To learn more about the key market trends and latest legal developments in Australia, visit our Australian Market: the state of play page.

Watch the overview below or explore the full series


Explore the full series and deep dive into each trending topic

Private capital alternatives       ESG on restructuring        Cross-border influences



Private capital alternatives

Part one of our three-part series on Australian distressed investing trends

The private capital market has grown significantly in the last few years and is now a very real and genuine source of finance for the Australian market. The 2019 Banking Royal Commission, increased regulation of Australia's retail banks and general market volatility created by the COVID-19 pandemic, have each contributed to opening the door for sophisticated offshore and onshore private credit funds to grow their Australian platforms. Coming up as the winner in the current liquidity challenged environment, we explore the opportunities this new class of non-bank lender offers to corporate Australia.


Role of ESG on restructuring

Part two of our three-part series on Australian distressed investing trends

ESG is dominating several industries and sectors in Australia now as it is around the globe. In Australia, we have only really seen the 'E' play out in the advisory sphere, though the 'S' and the 'G' are increasingly coming in to focus. How is this dynamic playing out for restructurings and financings? We explore the winners and losers in the ESG restructuring debate.


Cross-border influences on restructuring

The final of our three-part series on Australian distressed investing trends

The last decade has seen US and international capital play an increasing role in the Australian restructuring and insolvency market. Offshore funds are providing greater access to capital and more opportunities for large-scale restructures. The reality of cross-border stakeholders has also prompted Australian debtors to look at options and safeguards available via overseas restructuring tools and technology. A by-product of this shift is that US-style, high stakes litigation is becoming more common in Australian restructuring. We look at how the rules of the game have changed for successful restructures in Australia.

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Clayton Utz communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Formal legal advice should be sought in particular transactions or on matters of interest arising from this communication. Persons listed may not be admitted in all States and Territories.