Benefits

Development of special situations funds will have a major positive impact for the stakeholders:

Value to distressed companies

  • Putting collateral assets back into productive use, while avoiding liquidations and preserving and creating value for all stakeholders
  • Deleveraging balance sheets and restructuring debts to sustainable levels, and
  • Inducing managerial, operational, and financial improvements, and increasing their competitiveness

Value to financial markets

  • Providing liquidity and risk capital to the marketplace, which will allow financial institutions to place amount held as collateral back into the system for productive use
  • Cleaning banks’ balance sheets and reallocating resources to productive companies, and
  • Developing secondary debt markets

Value to the business environment

  • Accelerating compliance with environmental & accounting standards, corporate governance
  • Providing investors with risk mitigation, divestment routes, out-of-court resolution
  • Promoting international insolvency standards and creditors' rights, and
  • Creating a positive precedent, knowledge and expertise in the currently under-developed asset class in the region