In the news – Covid-19 Act staving off restructurings, specialists say (Business Times)
Read on for the Business Times article on the restructuring landscape post COVID-19 and DHC Capital’s viewpoints on the current market landscape. We commented that the new measures under the COVID-19 Act protected directors and allows companies to continue to trade. We further commented that instead of restructuring, companies are exploring options in financing and they generally fall into 2 groups of companies. The first group of companies may simply require funding to extend their liquidity runway in the event that the Covid-19 pandemic lasts longer than anticipated. We are helping such companies to explore relief capital from alternative capital provides if their banks are unable or unwilling to provide new loans. The second group comprises companies that operate in industries that have been hit badly by COVID-19, such as retail, energy, entertainment, tourism and tech start up, where a liquidity problem becomes a solvency problem.