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transatlantic restructuring OutlOOk

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Transatlantic Restructuring Outlook

cOntents

Foreword Methodology Survey Findings Half-Year 2010 Data About Merrill Corporation About Merrill DataSite Merrill Contacts Notes and Contacts 03 03 04 12 15 16 17 18

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FOreWOrD

Welcome to Transatlantic Restructuring Outlook, published by Debtwire in association with Merrill Datasite. this report garners the opinions of 125 legal and financial advisors from north america and europe to provide insight into the current transatlantic restructuring climate.

The majority of respondents (59%) expect transatlantic restructuring activity to increase over the next 12 months, driven largely by a high volume of restructurings in North America and Western Europe. But the drivers of restructuring activity are likely to vary on a regional basis, a point that respondents stress repeatedly throughout this report. While operational restructurings in North America are likely to stem from distress in the corporate world, Southern European restructurings are more likely to reflect sovereign debt crises in the region. Across all regions, restructuring activity over the next 12 months will be determined in large part by the health of financial institutions as banks may be unwilling or unable to refinance debt. Indeed, more than half of respondents (52%) believe refinancing debt will prove to be the most difficult aspect of the restructuring process this year—even more so than negotiating with creditors, financial forecasting, maintaining third-party relationships and complying with regional regulations. In keeping with these findings, the large majority of respondents (76%) believe debt or liquidity issues will be the primary driver of transatlantic restructurings over the next 12 months. As far as specific sectors are concerned, respondents generally expect restructuring activity to be...