Brighter outlook for companies as restructuring predicted to fall
MORE than three quarters of lenders believe company restructurings will fall or level off this year, as the difficult environment for struggling companies starts to ease, a fresh poll out today says.
The figures from Deloitte shows 52 per cent of lenders think the number of restructurings will fall over 2014 while 24 per cent think they will stay the same.
The poll also shows 40 per cent of respondents saw the volume of restructurings fall last year, a sign the UK economy is on the mend.
Deloitte head of restructuring Nick Edwards said: “Refinancing and A&Es (amend and extends) give corporates more time to resolve their operational difficulties, where they are not beset by poor trading and unsustainable debt levels.”
Just 18 per cent of restructurings last year led to an insolvency with most – 38 per cent – ending in a debt refinancing or sale.