AlixPartners announced the findings of its third annual experts survey and accompanying study into the outlook for corporate restructurings and turnaround activities across Asia-Pacific. The report, “Opportunity Knocks Success in Restructuring,” is based on interviews with 150 bankers, lawyers, fund managers, government officials and other restructuring experts from across the Asia-Pacific region. The study revealed that companies in the region will likely be restructuring in greater volume and at higher frequency in the next 12 months, which is potentially due in large part to macroeconomic uncertainty globally and may be exacerbated by a slowdown in the Chinese economy.

According to AlixPartners’ study, 93% of market participants anticipate that the number of corporate restructurings and turnaround situations will increase in 2015. That represents a significant uptick compared with expectations in 2013 (66% of respondents) and 2014 (70%).

Similar to previous years, global macroeconomic uncertainties remains the top driver of rising distress with more than a quarter of respondent sentiment. In particular, the unease from the slowdown in the Chinese economy, and mounting corporate debt across the region, with almost 40% of respondents saying that that downward shift in growth would contribute to increased restructuring activity. Alleviating debt or liquidity issues is another primary concern among respondents, as are regulatory or political developments and competitive pressures.

As in previous years, restructuring activity is expected to increase in varying degrees across the Asia-Pacific region. A prolonged recession in Japan means that 97% of respondents anticipate increased restructurings, with distress within the mining sector contributing to downbeat sentiment in Australia and New Zealand (93%). This is followed by South Korea (87%), Greater China (85%), Southeast Asia (75%), and India (74%). Top industries likely to experience upticks in restructuring are financial services (59%) and industrials (58%), followed by automobile manufacturers (50%) and the real estate sector (35%).

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