RAI Coronavirus Special Report: financing and restructuring

Today, we outline our editorial approach to how the coronavirus will impact financing markets, the role of banks and other lenders in supporting landlords, and whether we are likely to see a new wave of administrations, insolvencies, CVAs, and bankruptcies.  

The role of banks and other lenders will be critically important during this global crisis, and in its likely protracted aftermath. Marginal companies’ cashflows will be severely tested in vulnerable sectors.

Financing

  • Has liquidity dried up across the board? What are lenders’ approach to new lending and existing extension and refinancing talks at this time?
  • To what degree has pricing spiked or not?
  • Are lenders imposing new covenants?
  • Will lenders ‘forgive’ covenant breaches on corporate and secured facilities if tenant reduced cashflows prevent rental payments? Lenders will want governments to similarly be their backstop, have monetary and fiscal measures been supportive enough of lenders to enable them to support businesses?
  • Will lenders return to the ‘extend and pretend’ strategy during the GFC?
  • How lenient/strict are lenders being
  • How do you see the scenarios from here?

Restructuring

  • Governments and central banks have been decisive, but they will not be able to save everyone. Do you expect a new wave of insolvencies/bankruptcies/CVAs etc, or will national government emergency legislation successfully prevent these wind-up proceedings?
  • How will the situation vary by region?
  • Companies will be re-examining their underwriting for existing portfolios to assess vulnerabilities: what should vulnerable companies look out for?
  • Will there be a wave of loans defaults, leading to a new vintage of NPL loan sales?
  • What kinds of consultancy are rea estate companies seeking from restructuring specialists at this time? What is the volume of demand for emergency restructuring likely to be?
  • How do you see the scenarios from here?

Real Asset Media is also preparing a series of video interviews and virtual briefing events focused around these topics, the first of which will be on the macro picture and speakers will be announced shortly.  

RAM will donate every second advertising Euro to the Coronavirus Relief Fund. If you are interested in supporting the Real Asset Media special report with advertising please email: thorsten.herbert@realassetmedia.com or frank.beinborn@realassetmedia.com;

If you would like to send through editorial commentary or research for the report, please email: james.wallace@realassetmedia.com.

If you would like to be part of our new video conference series or would like to contribute to our ongoing video interviews (conducted via Zoom), please email: richard.betts@realassetmedia.com

PR’s are very welcome to provide commentary and suggest spokespeople on behalf of their clients. Thank you for supporting this initiative.