Chad Griffin
Conclusion
Fundamentally, we expect deeper oil and gas restructurings and a higher level of oil service sector insolvencies in this cycle as we are starting from a far weaker base position than in 2015. Assets are now older so we expect to see more consolidation and a lower tolerance from lenders that they should just extend their debt terms – this will shake out second/third tier players leading to greater consolidation and it will take capacity out of the market. There will also be some companies that exit the market entirely – this wasn’t a feature of the last oil cycle as most restructuring work centred around debt being restructured rather than the businesses’ operations. One thing is certain – management teams in this sector are aware of these issues and have been working hard to address them. Given the scale of the difficulties, an assessment of restructuring options is likely to be needed to help companies and their stakeholders address the challenges ahead.
Restructuring advisory
Corporate restructuring
Corporate advisory
Contentious insolvency
Solvent restructuring
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