Impasse on UK restructuring

Author: | Published: 1 Oct 2008
Lawyers at the table realised the best thing would be to delay

Although many UK companies are struggling, few are going into a formal insolvency process because neither they nor their creditors can afford it. Lawyers are advising both to wait and see.

The investment banks that form the biggest body of senior creditors are reluctant to enforce a restructuring, as it would probably involve a big loss and concomitant fees. With their balance sheets, that isn't...