Commodity swings, Asian volatility and pressured retailers to fuel German restructuring

London/Frankfurt (Germany) – Cheap, abundant liquidity flooding the market provided relatively easy exits for sponsors and distressed corporates in the past few years. But market volatility and external headwinds hailing from declining commodity prices and an Asian slowdown are proving game changers, particularly for export driven German corporates. Debtwire will be discussing the fallout as well as the latest trends in restructuring at its sixth German forum on 16 September at Villa Kennedy Frankfurt.

The event will bring together an audience of heads of restructuring, credit investors, debt advisors and lawyers to discuss the major themes in German work-outs, banking and high-yield bonds.

The forum, which will be chaired by Adelene Lee, senior editor at Debtwire, will feature a keynote address describing the current landscape and likely trigger events for restructuring in Germany. It will be followed by a series of panel discussions on the “future of German banking”; “where to restructure”; “the outlook for the increasingly competitive retail sector”; “the vagaries of the German self-administration process” and “how restructuring experts think businesses can cope with volatility.”

Adelene Lee said: “Debtwire foresees increased vulnerability, particularly for retailers on the wrong side of the dollar and commodity-related credits. Distressed German Mittelstand companies will likely also find it difficult to claw their way out as banks pull back and funds become more wary in the light of a few recent self-administration cases.”

Frank Grell, Partner at Latham & Watkins, stated: “Despite still some places of residual reluctance, insolvency proceedings in Germany are now guided by principles of creditor-control, value enhancement and predictability. This brings more distressed investors into the German market which is a great benefit for German Mittelstand companies.”

German high yield deal flow tailed off in the face of greater market uncertainty. High Issuance deal value YTD for August 2015 is EUR 9.4bn via 21 deals vs EUR 9.9bn via 29 deals in YTD August 2014, according to Debtwire data.

“Although Germany’s economy remains relatively robust it still offers plenty of opportunities for distressed investors, especially among mid-sized companies and certain sectors, such as retail,” Robert Schach, managing editor at Debtwire, added.

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