To our clients and friends

As restructuring professionals, we are all aware of the numerous factors that are weighing down the global economy: inflation, the war in Ukraine, rising interest rates, and the COVID-19 pandemic. Now it’s time to add to that list the threat of the United States running out of money and defaulting on its debts. This inconceivable event could occur when the country hits its debt ceiling, something that could potentially come to pass this summer.  

Breaching the debt ceiling is avoidable as Congress could increase the statutory limit on US debt, but at a moment of heightened partisanship and divided government, accomplishing that will be challenging.  As suggested by the New York Times, “The cost of not raising the borrowing cap could be catastrophic, causing a deep recession in the United States and potentially prompting a global financial crisis.”

While we all hope the US Congress figures a way out of this crisis, staying current on restructuring options around the world remains essential.  We help you do that in our current issue as we review hot topics in a variety of jurisdictions around the globe where our lawyers practice.  

And I would be remiss in not congratulating those same lawyers in recently being recognized as one of the top 10 law firms for cross-border restructuring work in 2022 by the Global Restructuring Review!

• Ten reasons to restructure under Canada’s Companies’ Creditors Arrangement Act
• Riding or breaking the wave – Is Germany's crisis legislation more than good intentions?
• Make-whole provisions: Impact of the Hertz and Ultra Petroleum decisions in US chapter 11 cases
• Directors’ liability under French insolvency law and tools to prevent it
• Update: Petrowest Corporation v. Peace River Hydro Partners: Enforceability of arbitration clauses challenged in Canadian receivership proceedings
• Cross-border insolvency between Mainland China and Hong Kong: First steps; ready to jump?

Good reading,

Howard Seife
Global Co-Head of Restructuring
New York

Scott Atkins
Global Co-Head of Restructuring
Sydney

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