In order to survive, companies and lenders alike will have to weather the storm, demonstrate a level of a…
The financial impact of COVID-19 will depend on how long it lasts and the depth of the fall in output. The main cost of COVID-19 will no doubt be unemployment occasioned by the inevitable financial distress of companies (a conservative prediction currently estimates the number of people to become unemployed to be in the millions). In order to survive, companies and lenders alike will have to weather the storm, demonstrate a level of agility and solidarity as well as consider corporate restructuring techniques to combat the effect of this pandemic. These techniques may include a subordination of debts.
First, back to the basics:…
Read the full article at: https://iclg.com/briefing/13767-south-africa-restructuring-and-insolvency-covid-19-subordinated-debt-in-business-rescue
