Restructuring experts have warned that many of the businesses that took Covid-related financial help in 2020 will be in distress again this year as UK government measures to support companies unwind next month.
Almost a third of global restructuring experts said that more than half of their clients that needed financing during the pandemic in 2020 would find themselves in financial distress again, according to an industry-wide survey by consulting firm AlixPartners.
Joff Mitchell, global joint head of the firms turnround and restructuring services practice, said one of the biggest threats facing companies at the moment is the inevitable increase of the cost of debt and the withdrawal of pandemic-related public funding.
In the UK, the b…
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