Time for recapitalisation
For businesses struggling with debt caused by the pandemic and lockdowns, and those that performed well, investment is crucial as they face pressure from shareholders and lenders. Amy Carr of Burges Salmon asks if 2021 will be the year of recapitalisations.
Since then, some will have taken on more debt or drawn down more under existing debt facilities. Others will not have suffered badly, and some will actually have done better, of course. If TheCityUK’s prognosis was correct in September, it is difficult to see how it would have become easier for stressed businesses since then. Particular sectors – travel, hotels and leisure perhaps being the most obvious – have seen timescales of the challenges extended. And of course, others have been affected by the UK leaving the EU at the end of 2020.
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