Seize the Day: An Outlook on Turnaround and Restructuring in Asia-Pacific 2014

20 May 2014

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AlixPartners has once again commissioned Remark to provide an outlook on restructuring and turnaround as corporate Asia adapts to shifting economics in the year ahead. Titled Seize the Day: An Outlook on Turnaround and Restructuring in Asia-Pacific 2014, this report highlights restructuring expectations and challenges for Asia’s corporate community in the year ahead.

Highlights from Seize the Day: An Outlook on Turnaround and Restructuring in Asia-Pacific 2014 include:

  • Across Asia-Pacific, 70% of respondents expect corporate restructuring to increase in the year ahead, with 21% saying such activity would stay the same as in past years. This compares to 67% expecting increases and 25% expecting similar activity in 2013’s survey.
  • A full 51% of respondents said a holistic turnaround would be the primary focus for distressed companies. Respondents noted that a comprehensive approach — addressing operational challenges, financial issues and management changes — can help pave a path to profitability, providing short- and long-term stability.
  • India will likely see an increase in corporate restructuring, according to 87% of respondents, a substantial jump from 60% the previous year. Japan and South Korea are expected to see these situations increase according to 76% and 73% of respondents, respectively. In Greater China, 74% of respondents said an uptick in corporate restructuring would be likely. In Australia and New Zealand, 67% of respondents expected increases, followed by Southeast Asia with 54%.
  • Private equity maintained its place as the likely source of investment for corporate restructuring, according to respondents. Banks operating in the region, however, have seen their influence wane with respondents pointing out that banks that have not already scaled back in Asia will take a more cautious approach to lending.
  • Australia, New Zealand and Southeast Asia stand apart as likely to have the most accommodating government policies due to their legal and financial systems and insolvency procedures. These countries were followed by Japan, Greater China, India, and South Korea, in that order, according to respondent sentiment.