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 remise 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 (GRR)!
Good reading,
Howard Seife
Global Co-Head of Restructuring
New York
Scott Atkins
Global Co-Head of Restructuring
Sydney
Publication
On 24 October 2024, the Court of Justice of the European Union (CJEU) confirmed that the European Commission’s (the EC) 2009 decision, which imposed a (then record) €1.06 billion fine on Intel, was flawed as far as it found that loyalty rebates granted by Intel had anti-competitive effects.
Publication
The Dutch tax classification system for non-Dutch entities will undergo significant changes as of 1 January 2025.
Publication
In King Crude Carriers SA & Ors v Ridgebury November LLC & Ors [2024] EWCA Civ 719 the Court of Appeal held that the claimant sellers (the Sellers) were entitled to claim the deposits promised under sale contracts as a debt despite the defendant buyers’ (the Buyers) breach of contract, which had resulted in the non-fulfilment of a condition precedent to the payment of the deposits.
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