Restructuring solutions are becoming more complex, more
expensive and taking longer to implement, according to Clifford
Chances restructuring team.
And with pre-packs arriving in continental Europe and the UK
preparing a new insolvency regime, practitioners and bankers
would be wise to consider the lessons learnt during the
firms work on the Southern Cross work-out.
Iain White of the firms London office said there were
times when he wondered whether the days of consensual
restructuring had disappeared altogether. Southern Cross,
however, proved the model still has huge advantages.
The work-out is nearing completion and has taken most of
2011 to reach this point. The business was able to keep trading
during this period, primarily because the landlords of its care
homes deferred rent and banks kept their lines open.
But, said White, it was a complex process.
The listed company had leased all of its...