The UK economy has seen a volatile 2019 with limited economic growth. There is little to signal that 2020 will be much better, as significant market uncertainty lingers. Businesses across all sectors have been affected, yet restructuring and financing options are available to alleviate stress, explains Shaun O'Callaghan.
2019 was characterised by political and economic uncertainty, which is set to persist throughout 2020 as the UK’s future trading relationships with its key partners are still to be determined. Covid-19, however, is set to overshadow other macroeconomic trends, with the real possibility of a downturn.
Real estate and construction, consumer markets, and manufacturing and industrials all continue to be sectors that face increasing elements of distress. A key issue facing these industries is the sustained development of environmental awareness, which has already driven significant changes in regulation and consumer preferences. More so than ever, businesses are having to adapt to survive and grow, which can represent a considerable opportunity for both the businesses themselves and their financing partners.
Existing financial stakeholders are likely to be companies’ best source of short term liquidity. Early engagement even when future assumptions by their nature will be uncertain, has to be a priority for investors and management teams.
We have seen a significant rise in the number of restructuring assignments across the last 18 months, helping over 400 businesses raise, refinance, or restructure £14.3 billion of debt.
Read the review for an overview of the work we have performed across the last 18 months. To discuss any of the assignments profiled in this review or to have a more detailed conversation on current financing trends, contact Shaun O’Callaghan or any of the UK restructuring partners.