With the outlook for the U.S. and world economies fading, 1 restructuring professionals may anticipate new innovations during the coming down cycle. One likely innovation will be an increasing number of cross-border restructurings using the growing flexibility of restructuring law abroad,...
Release provisions are a common feature of almost every Chapter 11 plan in large bankruptcy cases. Three categories of release provisions typically are included: (i) releases by the debtors of claims they may hold against a list of “released parties;” (ii) consensual releases by and among the non-...
In the wake of the COVID-19 pandemic, the surviving airlines have accelerated cost-cutting efforts, curtailed capital expenditures, and reduced their fleets. Arguably, airlines are in a much stronger operational position to cope with volatile operating environments. However, the highly uncertain...
Since 2020, at least five multinational airlines have filed for Chapter 11 bankruptcy 1 protection before the U.S. Bankruptcy Court for the Southern District of New York. 2 These cases provide a lens through which airlines and restructuring professionals can view potential restructuring efforts and...
The COVID-19 pandemic hit the bottom line of many businesses. Among the hardest hit industries has been the travel industry and, in particular, airlines and aviation companies. After suffering a complete shutdown at the beginning stages of the pandemic, airlines struggled to generate ticket sales...
The company was failing. A huge backlog, decreasing quality, and a general feeling of malaise had become the standard. The company had recently been bought by a holding company, which sent in a new president to fix the problem. The new president recognized that the company’s problems stemmed...
Driving sales of a company’s most profitable customers can make the difference between success and distress. To do so, one first must understand how much each customer contributes to the bottom line. This is not as simple as it sounds in certain industries, such as the aftermarket automotive. In...
Few industries are as impacted by macroeconomic pressure, global supply-chain disruption, and technological changes as the automotive industry. Over the past year, the sector has enjoyed light vehicle demand that significantly exceeded supply, and this is a major factor in Wall Street taking a...
Back in the fall of 2019, light vehicle production in North America was ending another strong year, at more than 16.3 million units. At that time, it was unimaginable that the automotive supplier community would have to endure the following challenges over the next three years: A strike by United...
During the financial crisis, automotive OEMs and suppliers faced a more rapid and severe collapse in demand than the industry had seen in modern history. In North America, new vehicle production dropped more than 40% from 2007 to 2009 as consumer confidence evaporated and new car financing...
