Gordian Group Partners Cited in Turnarounds & Workouts, “Restructuring Pros Reflect on 2021”

April 19, 2022/, ,

Gordian Partners Henry Owsley and Peter Kaufman Quoted in, “Restructuring Pros Reflect on 2021,” Turnarounds & Workouts – News for People Tracking Distressed Businesses

December 2021, Volume 35, Issue 12 

Turnarounds & Workouts asked restructuring experts to share their views on how the industry turned out in 2021.

Total Commercial Filings (Chapters 11, 7, 13 and 15):

2021 (through November) = 20,673

2020 = 32,517

2019 = 39,050

2018 = 38,044

2017 = 38,536

2016 = 38,283

2015 = 30,190

2014 = 34,818

2013 = 44,356

2012 = 58,058

Source: Epiq

T&W provides original content contributions not published elsewhere. Written by Christopher Patalinghug

RELATED CONTENT: Restructuring With Debt Spring-Backs and Spring-Downs Part 2, Co-Authored by Gordian Partners | The Deal

Questions and Answers on 2021 Restructuring Trends include:

  1. T&W: Overall what did the restructuring activity look like this year?
    1. Owsley & Kaufman: “The pace of the activity slowed from the energy-driven cases in 2020. The principal factors causing the change were a flood of liquidity and a large uptick in oil prices.”
  2. T&W: What sectors saw the most restructuring activity? Why?
      1. Owsley & Kaufman: “Oil & gas. (although down from the year before), due to regulatory issues. Senior living due to lower census and higher operating costs. Travel, etc. due to the effects of COVID.
  3. T&W: This year, the economy was beset with supply chain disruptions, extreme weather events and civil unrest in some states, among other challenges. How did these impact restructuring activity this year?
    1. Owsley & Kaufman: Relatively little.
  4. T&W: SPAC Analytics says 63% of US IPOs this year to date were SPACs (566 of 901), which collectively raised $152 billion. The number of SPACs is more than double 2020’s, with 248 SPAC IPOs, raising $83 billion. What impact, if any, did the SPAC craze have in the corporate restructuring industry?
    1. Owsley & Kaufman: This is just one more way liquidity entered the system. Risky debt is being refinanced or bought out, rather than being restructured.
  5. T&W: Were there any other trends in 2021?
    1. Owsley and Kaufman: We are likely getting closer to a market top across the board, leading to refinancing challenges ahead.
  6. T&W: Was there any court decision, case or transaction this year that might set off a trend of may influence how restructurings are done in the future? Or, were there cases that took an unexpected or surprising turn? How?
    1. Owsley and Kaufman: Liability minimization (Texas Two-Step, significant releases, etc.) will probably accelerate until the government acts.
  7. T&W: What do you consider as your challenge in the past year?
    1. Owsley & Kaufman: Managing through a remote environment, training junior professionals remotely, obtaining business in a very depressed default rate environment.
  8. T&W: You (or your firm’s) greatest success?
    1. Owsley & Kaufman: Being able to look forward to 2022.

Read the Full article here: Turnarounds & Workouts DECEMBER 2021

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