News from the INSOL Europe Annual Congress in Brussels
In a packed break-out session – standing room only! – INSOL Europe’s Turnaround Wing (which I co-chair) discussed the Mexican stand-off: forcing consensual restructuring solutions on stakeholders. The oxymoronic phrase highlights the challenges of operating in the twilight zone between severe distress and formal insolvency.
The key points highlighted were:
- Whether the impact of insolvency is clear or, as in some jurisdictions, ill-defined, insolvency is a threat that promotes consensus through fear of the unknown or the unacceptable.
- Valuations bring clarity, but will be tempered by issues that can be identified in the legal documentation.
- Cultural effects may impact stakeholder negotiations, as always when working in the cross-border space.
- It is irresponsible of stakeholders to allow stalemate where the company will end up in free fall and liquidation.
- Management often has a key role to play in these negotiations.
A case we had at Mercer & Hole where these considerations applied was Odyssey Care. We dangled a local authority over the precipice of insolvency, forcing a consensual solution.
Date: 12th October, 2012
Articles from this Author
20th July, 2017
Recast European Insolvency Regulation
26th June, 2017
The Recast European Insolvency Regulation (the “Recast EIR”)
28th November, 2016
Corporate Advisory Services & Brexit
13th July, 2016
While every accelerated M&A is different, finding the right adviser is always essential
Contact a Partner
“Good luck to everyone who has also made it as a finalist, I look forward to awards evening later on in the year”-L… twitter.com/i/web/status/8…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole