Geoffrey Frankel, Managing Director in Duff & Phelps’ Restructuring Advisory, Distressed M&A and Special Situations practice, was recently featured in a Bloomberg Law article, “Corporate Bankruptcies Delayed Until Virus Carnage Sorted Out.” COVID-19 has already pushed some major consumer brands into bankruptcy, but experts feel that a fresh wave of corporate restructurings is still a way off.

The contributing factors are an unprecedented level of restrictions, combined with government assistance making it hard to predict future demand and determine which businesses might rebound, or accurately attach a value to their assets.

In addition, stay-at-home orders, a sickened workforce and a general slowdown in global economic activity, have made it almost impossible to value a company accurately right now. To assess risk, investors need financial analyses that can predict future performance and a sense of what the post-COVID-19 business world would look like.

Geoffrey commented: “Restrictions on travel and gathering are also disrupting the restructuring process by preventing site visits, to take stock of what a company’s collateral may be worth.” 

“Deal-making is also hard to do when interested parties can only speak over the phone or through teleconferencing,” he added. 

Bloomberg Law subscribers can read the full article here.

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