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Restructurings to Peak 2012-2014

Thursday, October 07, 2010 - 04:05

Global Head of Restructuring at UBS Steve Smith expects to see restructuring activity across the media, industrial, telecom and green technology sectors in the next few years.

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we're completely out of the -- the good news is that the financing market is -- and so commercials realistic terms are able to access capital again which is critical. But in terms of overall loan In terms of IPOs from companies that have filed for Chapter Eleven General Motors for example the case in point since it was watching that stock in particular. -- equity. Values correct. Did people get it part of my default rates are coming down as issuers can find refinancing options and now is inexpensive. But there -- available in the middle of the crisis financing wasn't available at any price and so Thanks so much appreciate your time thank you. I'm Rhonda schaffler this is writers -- Is the recent slowdown in US bankruptcy filings just the calm before storm Steve Smith is that a global restructuring UBS. He joins me now good to see you. Chocolate and violence slowed down recently US corporations -- in the next couple of years have billions of dollars of debt coming due. Expect is going to happen when we hit that period a couple of years from now. I expect that. To me on to fall rate will slow down through all of twenty element I think that rating agencies are predicting commit to percent of allred and and that my element. Personally I think in 2012. You'll start to see you restructuring activity ramp up again and probably peak. Around 2013. Maybe even the slightest my fourteen somewhere -- that window it's hard to protect. I would imagine so what's your prediction if you will for the commercial real estate market it was. There's a lot of concern about that market this year perhaps we -- overly concerned but it doesn't sound like -- in the woods. I don't think we're completely out of the -- the good news is that the financing market is -- and so commercials realistic terms are able to access capital again which is critical. But in terms of overall loan to value and asset values I think we still have some work. General growth should expect the emergence from Chapter Eleven of those things. I do I think general growth has been one of the big success stories in Chapter Eleven. To start out with -- that massive debt load have everybody get paid back and have equity amount and do well. Lots of interest in general growth both and financing markets and an equity markets. Predicted -- of comfort for general growth. In terms of IPOs from companies that have filed for Chapter Eleven General Motors for example the case in point since it was watching that stock in particular. -- equity. Values correct. Did people get it right or -- worry that some of these countries and might make a return trip. I think it -- values are essentially correct and some market I mean it's like any other IPO. He can ask a question. You won't really know until the benefit of hindsight. I think the real question for most companies that are be listing. Is what's the structure and they really fix the problem and eliminated the risk of so called chapter twenty to return to bankruptcy. And in most cases I think that probably half but in some cases it can argue make the argument that not enough was restructured the first time around. I Reuters summit you're talking a little bit about the state of the debt markets how would you describe. The race and the opportunities for refinancing -- some companies try to work through -- there issues. I would say right now that debt markets are fairly robust and there's a lot of liquidity in the system. It's part of my default rates are coming down as issuers can find refinancing options and now is inexpensive. But there -- available in the middle of the crisis financing wasn't available at any price and so companies are having to resort to bankruptcy to protect themselves and specific loans such as -- loans also you've seen a huge dramatic change in the price. We have at at the peak of the crisis -- loans. Again oftentimes weren't available at all or if it were available at astronomical price thing 181920%. Plus rates. So we've we've seen those contract and narrow back in this sort of historical norms and to -- it very quickly what sectors the most honorable. To restructuring next here beyond mushrooms. It's it's hard to predict we're seeing activity and restructuring world across all sectors. Media Telecom. Industrials clean time so it's really quite diverse right now busy staring at. Thanks so much appreciate your time thank you. I'm Rhonda schaffler this is writers --

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Restructurings to Peak 2012-2014

Thursday, October 07, 2010 - 04:05