Emerging Markets Debt Restructuring

Beschreibung

Corporate debt in emerging markets (EMs) has reached historical levels in the post-Covid-19 world. This challenges international lenders (e.g., commercial banks, development finance institutions, and impact investors) and EM economies in their pursuit of economic development. This book builds on the authors’ first volume by focusing on the role of institutions in the economy, credit markets, and ultimately debt restructuring. The authors identify, contextualize, and evaluate the major challenges confronting restructuring professionals in EMs, offering “ten observations” on the major differences for the practitioner in the restructuring environment of EMs versus that of advanced economies. The authors present four detailed EM case studies (following these with counterfactuals) reflecting these ten observations. The authors also explore the main elements of an effective EM insolvency framework as relevant to the restructurer’s choice whether to pursue a formal versus an informal solution. Written for restructuring professionals by restructuring professionals, this book explores the factors which drive success—or failure—in EM debt restructuring.

Richard Marney is a senior advisor for risk management at responsAbility Investments (Zurich). He previously served from 2014 to 2019 as the firm’s chief risk officer. Prior to responsAbility, he had a broad and varied 40-year career in emerging and frontier markets banking and principal investing, with senior-level business and corporate development, risk management, and operating roles, including with BNY-Mellon and JP Morgan. He currently sits on multiple boards of directors in the emerging markets, including the African Guarantee Fund, Finca Armenia, MikroKapital Romania, MikroKapital Moldova, and Oasis Credit, Uzbekistan, and serves as an advisor and investment committee member to the Beacon Fund, Vietnam. He is a graduate of the Johns Hopkins University, Nitze School of Advanced International Studies, and University College London, with a specialty in development economics.

Timothy Stubbs is a partner with the global law firm Dentons based in London. Tim has worked on emerging markets transactions with Dentons (and its legacy firm Salans) since 1992, having previously practiced law in Chicago and New York. Tim also worked for two years in the Office of General Counsel of the European Bank for Reconstruction and Development (EBRD) in London on working sabbatical. Tim has led numerous debt restructurings as well as financings of all types, including bilateral and syndicated lending, real estate finance, and project finance.

Corporate debt in emerging markets (EMs) has reached historical levels in the post-Covid-19 world. This challenges international lenders (e.g., commercial banks, development finance institutions, and impact investors) and EM economies in their pursuit of economic development. This book builds on the authors’ first volume by focusing on the role of institutions in the economy, credit markets, and ultimately debt restructuring. The authors identify, contextualize, and evaluate the major challenges confronting restructuring professionals in EMs, offering “ten observations” on the major differences for the practitioner in the restructuring environment of EMs versus that of advanced economies. The authors present four detailed EM case studies (following these with counterfactuals) reflecting these ten observations. The authors also explore the main elements of an effective EM insolvency framework as relevant to the restructurer’s choice whether to pursue a formal versus an informal solution. Written for restructuring professionals by restructuring professionals, this book explores the factors which drive success—or failure—in EM debt restructuring.

Autor*in

Richard Marney

Themen in »Emerging Markets Debt Restructuring«

Corporate debt restructuring Judicial restructuring Consensual restructuring Workouts Financial crisis Emerging markets Developing economies Insolvency Corporate recovery Debt enforcement Debt overhang Debt distress Financial distress Collective action clauses Bankruptcy

Stimmen zu »Emerging Markets Debt Restructuring«

“This is a very pragmatic text containing much useful and practical information, while also remaining very approachable, reflecting best practice. It can certainly be recommended, not just for its content, but as a good and entertaining read. One of the most attractive features of both of the authors’ works is how the case studies connect the reality of actual practice with the often rarefied world of abstract transactions with view to making these more transparent and accessible to the reader.” (Paul Omar, eurofenix - The Journal of INSOL Europe, 2024-2025) 

“Essential reading for anyone seeking to understand the art of financial restructuring in emerging markets. Leveraging their decades of experience, with a pragmatic and insightful approach, Marney and Stubbs dissect the intricacies involved in resolving financial distress in emerging markets and illuminate actionable strategies for navigating common challenges successfully. This book will be a valuable tool for restructuring practitioners,  financiers and policy makers interested in emerging market economies.” (Matt Becker, Partner and Southeast Asia Turnaround & Restructuring Leader, Deloitte LLP)

“This book by Tim and Richard is a follow-up on their previous textbook on corporate restructuring and is as well-written. However, it now logically takes a more “helicopter” view and focuses on systemic and policy issues. As a restructuring practitioner with almost 30 years of experience across numerous jurisdictions, I can say one thing: as good as you may be, your success depends a lot on the macro- factors. And another thing is: the reality on the ground may be very different from what the laws and regulators say. Richard and Tim bravely embark on exploring this subtle dynamics – that is why reading their new book is as useful (and entertaining) as the previous one.” (Alexander Erofeev, Chief Special Operations Officer, International Finance Corporation (IFC))

“In this book, Richard and Tim skilfully explore the landscape of debt restructuring in the varied institutional frameworks of emerging markets. By employing rigorous analysis of theoretical frameworks, extensive case studies, and forward-thinking perspectives, they provide readers with the resources needed to address the complexities and possibilities associated with debt restructuring in emerging markets. This book is highly recommended for both seasoned professionals and newcomers.” (Constant N’zi, Deputy Chief Executive Officer and Chief Risk Office, the African Guarantee Fund)

“With this book, Richard and Tim comprehensively identify, evaluate, and analyse the complex array of factors that drive emerging market debt investment life-cycle performance. They masterfully illustrate through real-life cases drawn from their decades of experience, that the performance of debt in emerging markets is as much about the quality of the country’s institutions, operating environment, and legal frameworks as it is about the financial fundamentals of the borrower.” (Jaskirat Chadha, Head Financial Inclusion Debt, responsAbility Investments)

“I am delighted that Richard and Tim decided to ‘pen’ volume II of Emerging Markets Debt Restructuring given that volume I already provided so much insight to us as readers. The stark comparison of Advanced Economies versus Emerging Markets reminds us why restructuring in EMs requires a whole new game plan, advisory approach and pragmatism around execution. The unpacking of what emerging markets are and consist of was a stellar way to illustrate both the macros plus the idiosyncrasies at the same time. However, as a restructuring practitioner in sub-Saharan Africa it was the “Ten Observations’ that serve as an astute and insightful reminder for those of us in EMs and a great introduction for those in advanced economies who have not yet experienced the added complexities ranging from ‘culture’ to ‘stigma’ through to ‘access to capital’ (or rather lack thereof).” (Stefan Smyth, Managing Director, Kroll Restructuring South Africa)

“Based on a broad experience as navigators in turbulent times, the authors present the second part of their logbook “EM Debt Restructuring: Effectively Navigating Local Institutional Frameworks” which is ostensibly aimed at more experienced restructuring professionals. The navigator's primary responsibility is to be aware of its position at all times. Responsibilities include planning the journey, advising the decider while en route, and ensuring hazards are avoided. This work, written in a fluid and varied manner but with considerable academic depth, provides the reader with a wealth of insights and suggestions to be applied in negotiations to fulfill his aforementioned duties. Most welcome is the strong call to follow and implement the INSOL II principles to achieve best practice for our usual out of court workouts. It is to be hoped that this blue note manual will quickly become a standard source of inspiration for lenders, consultants and policy makers.” (Ulrich Mueller-Gaude, Manager Special Operations DEG Deutsche Investitions und Entwicklungsgesellschaft mbH)

“In the eternal dance between theory and practice, Tim and Richard have created a work that draws on the best of both. It is not only clear-headed about the art of emerging market restructuring as it is currently practiced, but it also illuminates the path to better outcomes for all stakeholders. Appealing to our better angels, the book shows how empathy, pragmatically deployed, can be the most versatile tool in any complex negotiation.” (Luke Franson – Head of Treasury & Local Currency, Finance in Motion)

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