A survey by the /amo network: Corporate Insolvencies & Restructuring in Europe
Discussion of a wave of insolvency has been rife since the onset of the Covid-19 pandemic, yet it is still to materialise. We asked those working in and around the financial restructuring and insolvency space in Europe about their expectations of activity for the remainder of 2021 and into 2022.
The findings are conclusive, despite what European Governments have said, most respondents believe they will still be propping up some businesses to the end of 2021 and as a result are not expecting the “Wave of Insolvency” until 2022. Unsurprisingly, Retail, Hospitality & Leisure, and Travel & Tourism are all expected to receive additional financial support, but despite this, there will still be casualties, most likely amongst smaller companies. However, questions remain over what this means for the longer term, and how companies will continue under the burden of large debts and how they reassure and communicate a path forward.