Introduction from this edition’s editor, Cătălin Nichifor |
Managing Director CEE – BM&T European Restructuring Solutions
Dear friends, colleagues and partners,
I am not at my most comfortable with words and text. I recognize that I feel better with numbers in Excel and PowerPoint. As the Covid-19 pandemic crisis affects us all and changes our lives, I am sometimes dramatically adapting to this new digital world, becoming active in the online world.
Firstly, I wish to send a big thank you note to our contributors, Daniel Radwański – Poland, Alberto Cerini – Italy, Valentin Voinescu and Cătălina Dan – Romania, Manuel Gordillo – Spain and Volker Beissenhirtz - Germany, as I know, it is not always easy to write an essay in such a short time and dealing with such unpredictability.
For me, the key point of the message is flexibility. We need to act according to the concept, use flexible behaviour to overcome obstacles, be constructive and adaptable and fill in the gaps. Covid-19 is affecting the population and also companies and economies, touching all aspects of our life. As we provide mass testing to populations, we should provide mass testing for companies, pragmatic and timely. As we provide mass vaccination to populations, we should provide mass vaccination to companies, not necessarily by helicopter money and other type of popular methods, but through bridge money, turnaround managers, and turnaround solutions. We need to look for better prevention and faster reaction, from a taxation, legal, financial, and economic point of view, and EACTPs are the front-line doctors for the economy. Let’s be present and active; let’s take measured risks and offer our help, even if some time is voluntary and pro bono, to resolve this situation and reach the sunny side of the valley.
Looking at the opinions distributed by contributors, we see various reactions of legislators and authorities in each jurisdiction, and I would highlight the very pragmatic, almost out of court, solution provided by Poland, versus the control by IP and lengthy processes intended by the Romanian regulator. Spain is more sophisticated than other countries in Europe, while Italy is still contemplating the disaster and is not taking any action against it. New laws in the UK, Holland and Germany are mainly untested.
It happened last week, as I am writing this article on 1st of March, the first day of Spring, to be involved in the organization and development of the DIC2021 by TMA, the distressed investment conference of the year. What an event; such a great organization and extremely high quality of people. It speaks more about the US and less about international, as old Europe and Asia are still inward-looking and locked in between borders. Please, do not forget, we are not only EACTPs but also TMA members, and there are plenty of events and resources that we can access, plenty of networking opportunities and ideas on how to tap the money sources around the globe.
With a metaphor as a conclusion, even though we are in Spring, winter is not coming; it is already here, but not with cold and ice, but with a huge pandemic, infecting both the population and companies. Let’s fight against this pandemic with all the resources and commitment we have. Nobody is better placed than EACTP to do it better.
If you would like to be guest editor for our Summer 2021 newsletter, please email [email protected].
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News from EACTP president, Alan Tilley |
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As we move out of the lockdown era into a phased return to business normality, our turnaround skillsets will be in increasing demand. Governments across Europe have responded to the crisis with unparalleled liquidity, and the suspension of insolvency triggers deferring the inevitable restructuring for many companies for which business will not be the same. But this support must end. What the market will be, which industries and countries will be affected, when will this lead to an upturn in work, and how turnaround professionals should be planning to take advantage is a topic of our next webinar of March 15th. We will have four of Europe’s most experienced professionals giving their views. Please click here for more details and to register.
This is the start of a busy period for EACTP. Our new training program with Leiden University goes live at the end of this month, and we will engage in a wide marketing campaign to aspiring young professionals and to seasoned professionals who do not yet have certification. We have developed an ambitious marketing plan with our marketing consultant to promote both training and certification. We now need to execute it. The benefits of certification will focus on potential users of CTP’s across a wide stakeholder range; companies of all sizes, professional firms, lenders, ABL’s, Private equity, and industry associations. We will also target regulatory bodies to encourage the recognition of CTP’s as qualified professionals in the various pre-insolvency processes emerging across our continent.
We are seeking a new Board member to lead this marketing process, and a task specification is about to be circulated to members. I do encourage our members to be active in our organisation, and we would be delighted if any member with a penchant for marketing will volunteer for this position. Please contact myself or Helen Lindop for more information.
Establishing and administering a training program and a marketing plan cost both time and money. Accordingly, it is time for the 2021 membership fee invoice. This year we plan to send two invoices at 50% each in Spring and late summer to spread the load for members. We greatly appreciate the support of our membership and will continue to provide educational materials in webinars and newsletters for existing members whilst increasing our activity to promote turnaround across the stakeholder community.
The recognition of turnaround ahead of insolvency as a greater preserver of value and jobs has made excellent progress in Europe with both TMA Europe’s and EACTP’s active involvement. But there is more to achieve. We have been leaders in this process so far, and we can be proud of our achievements. Turnaround is a force for good and a rewarding and worthwhile profession. Now more than ever, our skills are needed. EACTP will be at the forefront of promoting our value.
With best regards
Alan Tilley
President, EACTP
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The simplified restructuring proceeding: a new restructuring tool in Poland |
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By Daniel Radwański, Head of Insolvency & Restructuring, Schönherr Warsaw
The year 2020 will no doubt be remembered for COVID-19. The pandemic has shaken our societies and profoundly affected our lives. It has wrought financial havoc, forcing governments and policymakers to look for and implement unorthodox solutions to save the economy, businesses and jobs. Many states swiftly introduced extraordinary legal measures, including in the area of restructuring and insolvency, designed to alleviate the financial burden of cash-strapped but otherwise healthy businesses and allow them to survive. In Poland, one such measure that has the potential to significantly amend the debt restructuring framework, even beyond the COVID-19 time, is the simplified restructuring proceeding ("SRP").
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Sound risk for more than 36% of Italian companies, opening the door for effective turnaround |
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By Alberto Cerini, Head of Corporate Turnaround & Restructuring at Studio Temporary Manager SPA
In Italy financial rating at risk for 36% of companies
with turnover between 5 and 50 million euros, with eight regions that exceed 40%. The discontinuity with the past entrusted to credible managers alongside the entrepreneur
is the key to effective turnaround
To suffer more are companies in Sicily (43%), Abruzzo (42%), Lazio (42%), Molise (42%), Puglia (42%), Calabria (42%), Basilicata (41%) and Sardinia (41%). 2021 is marked by uncertainty, but an effective corporate restructuring plan can create a climate of trust and consensus among the main stakeholders, thus offering a second chance to a company in crisis.
Recovery plan, corporate restructuring and corporate turnaround were among the most recurring words of the past 2020 and the next ones to focus on. 2021 will be a complex year for Italian SMEs, with Cerved agency expecting to see an increase in defaults of +10% compared to the pre-Covid months, despite State aid and the hopes entrusted to the Recovery Plan. But what is the situation today? How many companies won't make it when the moratoriums and extensions end?
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The silent administrator for pre-pack bankruptcy arrives in Spain |
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By Manuel Gordillo, Partner, Abencys
The Mercantile Courts of Barcelona have recently developed guidelines for pre-pack transactions (the “Guidelines”) that imply the introduction of the Silent Administrator in Spain, following the example of other jurisdictions as UK and The Netherlands.
The court process to sell the businesses of a company under insolvency in Spain sometimes proves inefficient due to the protracted duration of such process. This was due to several factors but mainly the need of granting all the parties involved legally established periods of time to exercise their rights and the time needed by the Insolvency Practitioner to get a reasonable knowledge of the company.
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Romania – the challenge to get turnaround right |
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By Valentin Voinescu and Cătălina Dan, of Nestor Nestor Diculescu Kingston Petersen
Turnaround and restructuring have always been difficult in Romania. Companies rarely turn to out of court proceedings, mostly due to lack of experience and institutional encouragement, while in
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court proceedings (i.e. the judicial reorganization) are formal and lengthy with little to no success.
Past crises have also proven that market disruptions in Romania are usually triggering a significant increase in the number of corporate insolvencies and, unfortunately, more often than not, companies end in bankruptcy.
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SanInsFoG – Insolvency grounds & Co., what has changed? |
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By Dr Volker Beissenhirtz, Beissenhirtz Business Law
Now it’s official – the SanInsFoG came into force (at least in its most important parts) on January 1, 2021. And already, the first reform is just around the corner: the pandemic-related further extension of the “COVInsAG”. After the smoke has cleared from the trench warfare over the design of this next “reform of the century”, which after a decade of discussion has finally given birth to something like a “pre-insolvency restructuring mechanism”, I will (as already promised at the end of last year, here) take a more in-depth look at specific aspects of this reform work in a small series.
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Turnaround in 2021: A new playing field, new rules and new tools |
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Panel discussion with Eva Ringelspacher, David Bryan and Kees Lieve, chaired by Tony Groom.
15th March 2021, 10.30 GMT/11.30 CET, online
For more information and to register, please click here.
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Events
TMA Europe 2021 East European Summit
Tuesday 27th April 2021, Online
Please click here for more information and sponsorship opportunities.
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News for Members
Welcome to our new members
A warm welcome to Alberto Cerini, Gregoire Bouille, Matthew Quade and Vlad Nastase who have recently become Certified Turnaround Professionals (CTP) and Dan Gheorgiu who has become a Certified Turnaround Analyst (CTA).
Would you like to be the guest editor for the Summer issue?
If you would like to be guest editor for the Summer issue of the EACTP newsletter, please email Helen Lindop at [email protected].
LinkedIn
Please remember to add your EACTP membership to your LinkedIn profile, and follow the EACTP LinkedIn Page. You are also welcome to join our LinkedIn group.
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Copyright © 2021 European Association of Certified Turnaround Professionals, All rights reserved. You are receiving this because you are a member of EACTP or TMA Europe. |
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