The Best in Worst of Times : The Winning Turnaround

Easy money conditions in recent years fuelled a surge in deals ranging from acquisitions and LBOs, to leveraged recapitalisations. The use of increasingly forgiving, and complex, capital structures, including the growth of second lien and PIK toggle note financings, was not only a sign of an overheated market, but will also have an impact on recovery prospects in the reorganisation process. And easy access to cheap credit allowed many faltering companies to delay their day of reckoning. But now the credit tap has turned and business conditions have worsened, creating both supply and demand side impetus for turnarounds