The COVID-19 outbreak has sent shockwaves across Asia’s economies. While companies have been dealt sudden liquidity crunches, governments across Asia have rolled out temporary policies in an attempt to support them through this crisis. Nonetheless, many believe that the virus’ impact will be too substantial to overcome for certain borrowers and a tsunami of restructurings and bankruptcies are on the horizon. The opening panel will explore how the credit landscape has changed over the past 12 months and how it is shaping up for Q4 2020 and beyond.
How have markets responded to the COVID-19 fallout, and how have economic stimulus packages fared for the region’s major economies?
How has the demand for capital fluctuated over the past 12 months?
Which industries are expected to offer the most enticing distressed opportunities, and which type of restructuring will be preferred?
How will this unprecedented event change the Asian debt financing landscape?
Panel discussion: Australia: Preparing for a wave of restructurings
On 25 March, 2020, Australian Treasurer Josh Frydenberg announced a temporary set of relief measures to support businesses, which included a higher threshold for initiating bankruptcy proceedings and a lengthened response time. While this meant insolvency appointments temporarily took a step back, investors and advisors prepared for the lag and anticipated an avalanche of bankruptcies once the policies ended in September. However, with the COVID-19 situation rapidly deteriorating in Victoria, there are rumours that the moratorium period will be extended. What would this mean for distressed opportunities in Australia? Our panel will assess:
What is the current state of the Australian distressed debt market?
How will a further extension of relief measures affect the pipeline and quality of opportunities?
Which sectors have been hardest hit and which present the most potential for distressed investors?
Will Australia attract more distressed and special situations players in the coming years?
Panel discussion: A new era in China?
While China’s economy is expected to pick up sooner than its Western counterparts, a global slowdown will continue to take its toll. Chinese non-performing loans (NPLs), which saw an increase amidst the virus fallout, continue to intrigue investors, especially given the clause included in the US-China Phase One trade deal which promises to open up the NPL market to foreign investors, and with the establishment of a fifth national asset management company – the first in 21 years. A rise in bond defaults is also likely, but to what extent will the Chinese government intervene? Our panel of experts discuss how to evaluate the upcoming opportunities in China.
How has the Chinese government reacted to the impact of COVID-19?
To what extent will there be an uptick in Chinese bond defaults going into 2021, and where do the restructuring opportunities lie?
Given the impending changes, how will dynamics shift within the Chinese NPL market?
How are investors accessing targets in China and conducting due diligence during these unique times?
Cross-border restructuring: A case study
The global liquidity crunch caused by COVID-19 will inevitably lead to a sizeable amount of distressed debt worldwide. Although opportunities are set to rise, due to factors such as varying insolvency laws and creditor rights across jurisdictions coming into play alongside the global economic downturn, lenders looking to engage in cross-border restructuring should plan strategically and proceed with greater caution. Our speakers will provide an update on recent developments and significant court rulings, as well as highlight the ways to overcoming cross-border challenges.
Panel discussion: India, Indonesia, and the rest of Asia
Prior to the COVID-19 outbreak, certain sectors in India were already showing signs of an imminent collapse. With the pandemic now fully in the picture, distressed funds can expect an even wider range of available options. However, with the Reserve Bank of India (RBI) introducing waves of relief measures and possibly further extending the moratorium period, how will deal flow in India be affected and will opportunities in Southeast Asia prove to be more valuable and accessible during this period of time?
Given the upcoming wave of distressed companies around the world stemming from the COVID-19 outbreak, can India still attract interest from foreign investors?
How have sectors across India reacted to the RBI’s relief measures, and will there be more to come?
What types of businesses will prevail with the help of stimulus packages, and which sectors will present the most opportunities for distressed debt investors?
From a distressed debt perspective, how does India compare to Southeast Asian countries such as Indonesia and Singapore?