FW: KPMG Restructuring - Mid Market Client Update

 

KPMG
Audit Tax Advisory

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Newsletter

KPMG LLP (UK)

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Welcome to our first client update of 2010 and once again we find ourselves in interesting times. Following a period of calm towards the end of 2009, the start of 2010 has brought a marked increase in restructuring activity. Following the sharpest falls in GDP since the Second World War, the UK economy finally crawled into positive territory in Q4 of 2009. However, the recovery is fragile and there remain a number of very significant downward pressures on the economy which will make 2010 a highly challenging year for corporates. We look at some of the challenges facing management teams in our article entitled "Managing out of a recession". In terms of sectors, 2009 was undoubtedly dominated by Property & Construction and Retail. We have included updates for both these sectors in this edition and we also include a summary of our recent KPMG Automotive Survey. Automotive hit the restructuring radar in early 2009 and it is clear that there remain significant challenges facing manufacturers, the supply chain and retailers - and these challenges existed before Toyota's recent difficulties. In a section entitled 'Recurring Themes', we provide an update on three topical areas namely; HMRC, CVAs and Landlord v Tenant as well as an update on our Mid Market Debt Advisory Group. As usual we also provide a summary of recent engagements to give you a flavour of our work around the country. Please feel free to contact me if you would like to discuss any aspect of this update or other restructuring issues. Managing out of a Recession Following the sharpest fall since the second world war, UK GDP has finally returned to positive territory in the third quarter, albeit very weak. To read more click here. Sector Focus Sector Foresight In case you missed it, please click here to see our latest edition of Sector Foresight To read more click here. Automotive survey KPMG's latest annual Auto Executive Survey illustrates tough times are expected to continue in the automotive sector. To read more click here. Property & Construction Rents in prime developments are starting to improve. The London City market hit a low last year when Nomura secured a six year rent free for signing a 20 yr lease on a new 200,000 sq ft office development. Rents have now improved from £45 per sq ft to £50 per sq ft with Blackrock gazumping. To read more click here. Recurring Themes HMRC CVAs Landlords Vs Tenants Mid Market Debt Advisory Group As we enter a new decade, the economy continues to remain turbulent and access to easy credit is now a distant memory. All businesses should be reviewing their financing requirements, particularly those with facilities maturing in the next eighteen months. One of the greatest risks we see is from businesses who adopt a 'wait and see' approach. To read more click here. Recent Assignments First Quench Retailing Limited Project Newt SRG creditors vote through CVA proposal Logistics Company	Mark Firmin Partner 0113 231 3487 The Mid Market Team
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