F1: RESTRUCTURING EXPERTS PREDICT THE OIL AND GAS
INDUSTRY WILL STABILIZE DURING 2017 AND INTO 2018
Q: 2016 saw a large number of bankruptcies in the oil and gas industry.
When will this industry begin to stabilize?
F2: HALF SAY MOST OIL AND GAS COMPANIES WILL
RESTRUCTURE THROUGH CHAPTER 11 BANKRUPTCY
Q: How will most oil and gas companies in distress tackle their
fnancial problems in 2017?
Chapter 11 bankruptcy
Out of court
For “Other,” respondents wrote
answers that included mergers,
raise capital, price increases
Restructuring activity to rise in 2017
SURVEY: BANKRUPTCIES WILL INCREASE OR REMAIN THE SAME AS 2016
ALIXPARTNERS, a global advisory firm,
has released the results of its 11th an-
nual North American Restructuring
Experts Survey. This year’s survey,
which represents the opinions of 207
senior-level restructuring experts, indicates there will likely be more restructuring activity in 2017 than last year
with 78% of respondents saying the
number of bankruptcies will increase
or remain the same as 2016. This comes
after 2016 saw a rebound in the number
of business bankruptcies after many
years of decline.
“In addition to retail and oil and gas,
we are seeing increased restructuring
activity in shipping and energy/utili-ties,” said Lisa Donahue, managing
director at AlixPartners and global
leader of the firm’s Turnaround & Restructuring Services practice.
“As the year came to a close, 2016
will be remembered for some of the
most impactful global events on record
that not even the most well informed
experts could have predicted,” she said.
“But the changes brought upheaval and
opportunities for the restructuring
community to contribute its skills. We
expect this to continue in 2017.”
INDUSTRIES TO WATCH IN 2017
In the United States, the top industries
predicted to face distress in 2017 are
retail (67%), oil and gas (57%), and
health care (31%). Outside of the US,
oil and gas (55%), maritime and shipping (40%), and retail (35%) are the
three most-cited sectors.
The retail industry began 2017 under the spotlight after an uptick in
bankruptcies in the sector in 2016. Several high-profile apparel retailers filed
for bankruptcy last year and as consumers continue to migrate online for
purchases, retailers are under continued stress to adapt their operations to
the changing environment.