TMA Europe

Friday 24 June 2016  |  TMA Europe  |  www.tma-europe.org

Lack of insolvency regimes for European SMEs hampers restructurings, investors seek Spanish-style scheme of arrangement - conference coverage
by Dawn Grocock, Legal Analyst, Europe, Debtwire

The lack of European insolvency regimes designed specifically for SMEs is hampering restructurings , according to several panellists at the annual TMA Conference held in Rome last week (9-10 June).

Although an increasing number of struggling companies have started to spin-off their good businesses to avoid bankruptcy proceedings, Spain's "scheme of arrangement" - modelled on the UK's pre-insolvency legal framework - is one of the most effective tools in Europe for dealing with ailing SMEs, noted a speaker at a panel focused on trends, techniques and tools for SME Debt Restructuring in the main Continental European jurisdictions.

"Germany's rules for large companies are not handy for SMEs. For instance, a small company in trouble can wait only three weeks before filing for insolvency [due to the country's 21 day liquidity law], which is definitely not enough to organise a turnaround plan," a second panellist commented. "From 2003 to 2009, Germany faced a boom of mezzanine facilities, eventually refinanced with Mittelstand bonds, where the default rate is 20%. Now we're expecting SME debt to be the next big thing in German restructuring." Read more...

For the full TMA Europe annual post conference review please click here.
Bookings open for TMA Europe's Distressed Investing Conference 2016

TMA Europe will host its fifth annual event dedicated to the distressed investing market in London this September.

Some of Europe's leading turnaround experts are being lined up to take part in the Distressed Investing Conference on Wednesday, 28 September, for which bookings are now being taken.

This year's event is called Gridlock or Opportunity, and will focus on where the distressed debt market is going and what buyers, sellers and advisory professionals need to know to best handle it.

Alan Tilley, a TMA Europe board member, said previous conferences had focused on €1 trillion and rising of European NPLs and the opportunity for the restructuring profession, but that actually little progress had been made, meaning it was now time for some lateral thinking and to explore other avenues of opportunity.  Read more...

Re-thinking Brand Valuations
Art Meets Science
By Rafael Klotz, Senior Managing Director, Gordon Brothers

Brands in the UK and the US are increasingly becoming ubiquitous as collateral for asset-based loans (ABLs).  What once was included as mere boot collateral to supplement the value of tangible assets is now the primary asset securing many loans. In Europe however, to date brands have been frequently under-leveraged - ironic when you consider the plethora of international brands in markets such as Italy and France. Yet, as demand for ABL financing is starting to increase in the Eurozone, using brands merely as boot collateral just doesn't make sense - borrowers miss out on the opportunity to obtain additional liquidity, and lenders miss out on the opportunity to put more funds to work. Read more...
TMA Europe's Turnaround of the Year award winners

Two outstanding examples of turnaround management have been recognised by the European body dedicated to corporate renewal.
                 
                    Freshfields team                           Rcapital team 
The winners of TMA Europe's annual Turnaround of the Year awards were announced at its annual conference earlier this month as Freshfields Bruckhaus Deringer for its turnover of a large company and Rcapital for its turnover of a small company. Read more...
TMA Europe response to EU Harmonisation

TMA Europe has filed a response to the EU Commission's harmonisation proposals on Insolvency II, focusing on "Early Restructuring Procedure". 

The full letter can be read here. 
EACTP response to EU Harmonisation

The EACTP have filed a response at the EU Commission to their Consultation on Insolvency II in relation to early restructuring procedures to give the turnaround industry's view.  You can read the full submission made by the EACTP here.
The 2016 TMA Annual Keynote Speakers Announced
Taking care of business

Robert "Steve" Miller, president, CEO, and director of the Tier One automotive supplier International Automotive Components (IAC) Group, and Andy Borowitz, Satirist, Author and Creator of The Borowitz Report, are the two keynote speakers for The 2016 TMA Annual taking place November 2-4 at Disney's Yacht Club Resort in Lake Buena Vista, Florida. Read more... 
Debtwire Legal Analysis of UK Government Consultation on 9 June 2016
By Dawn Grocock, Legal Analyst, Europe, Debtwire

During the final week of May the UK Insolvency Service launched its consultation 'A review of the corporate insolvency framework: A consultation on options for reform'. The consultation, which runs until 6 July, seeks opinions on whether the UK's corporate insolvency framework requires modernising and improving....

Submit TMA Europe Newsletter Articles 

Submit articles for consideration for the next TMA Europe Newsletter to Mandy Caruana by Wednesday 13 July 2016. Suggested topics include TMA Europe events, activities, or announcements. 


 

TMA Europe Sponsors


 

Apply for European CTP now!

EACTP logo

Become accredited with CTP, the turnaround kitemark of quality. The EACTP certification programme is now open for applications.

 

New Members:

Ronald van Rijn

New TMA Publication:
"Investing in Distressed Debt in Europe: The TMA Handbook for Practitioners"

TMA Europe has a co-publication with Globe Law and Business, http://www.globelawandbusiness.c
om/IDD/ and Globe Law and Business is ready to take pre-orders for the book. TMA members get a 20% discount and all pre-orders should be emailed to Sian@globelawandbusiness.com

Upcoming Events

EACTP Networking event, London, UK

TMA Europe Distressed Investing Event, London, UK

19 October 2016
EACTP networking event, London, UK

TMA Global Annual Conference, Florida, USA

15-16 June 2016
TMA Europe Annual conference, London, UK. Save the date!
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