What are the forces leading to the increase in multinational restructurings and what kinds of issues have resulted?
HSB: On one level, it’s really quite simple: in today’s global economy, more and more companies have assets and operations in many countries, and that applies to distressed companies as well as healthy companies. In the past, it was usually clear what the center of gravity of a troubled company was, and there would usually be a bankruptcy filing for that company in that jurisdiction. Today, it’s often more difficult to pin down the center of gravity in the restructuring, and multiple proceedings are more common. Another factor, even when distressed companies are located primarily outside the U.S., is that U.S.-based funds that purchase distressed debt and equity have been migrating to overseas restructurings in a major way. In part, that’s simply money looking for a place to be put to use as U.S. Chapter 11 filings are currently in a cyclical downturn after several years of feverish activity. This, too, has contributed to making multinational restructurings an increasingly global affa
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