It quickly became obvious, as countries began to enter into lockdown and many companies were forced to suspend their operations, that a tsunami of insolvencies was likely to follow in those jurisdictions which had been hardest hit by Covid-19, particularly in the event of a second wave of the disease.
Some businesses saw their cashflows dry up with a terrifying rapidity. For those that were already struggling, lockdown was the final straw, with stakeholders taking a view that it was no longer worth fighting to save the business and that the pandemic provided the perfect excuse for closure. The owners of many previously viable businesses chose to mothball all or part of their operations until lockdown ended, only to discover, on emerg…
Read the full article at: https://www.iflr.com/article/b1nf2h44r1gcl4/restructuring-and-insolvency-practitioners-brace-for-39tsunami-of-insolvencies39