May Edition 2020

29 Recently, we caught up with Restructuring Partner Daniel Simon f rom the Atlanta office of DLA Piper, and Associat e David Avraham up in the Chicago office and also a member of the Israel Country Group. We are hugely grateful they took the time out of their busy schedules within DLA’s global Restructuring Group of more than 200 lawyers to share with us their observations on trends and best practices in these deeply uncertain times. Their insight is gleaned from representing companies seeking restructuring options for their businesses, purchasers seeking to buy distressed assets, as well as bondholders, lenders and other financial institutions across the spectrum. Dan and David discussed the varying stages that companies have encountered during the COVID-19 crisis. The Fast Moving Coronavirus Crisis: From “Wait and See” and Triage to Long-Term Strategic Planning The initial expectation was that the Coronavirus crisis would pass quickly and that this would be a business disruption for 30-45 days, at most, and then business would resume as usual. This triggered “triage” mode: What do companies need to address in the immediate future to ensure that they come out relatively unscathed when the crisis passes? Companies examined impending loan maturities, immediate capital expenditure needs, tax obligations, and other critical payments, to ensure that business would continue without triggering any third-party defaults or otherwise jeopardizing the company’s operations. But once reality set in, companies—even those that were thriving pre- COVID—understood the need to implement longer term plans to ensure the post-COVID viability of their businesses. DLA’s Restructuring Group has seen an influx of inquiries from colleagues in nearly every sector and practice group, whose clients are seeking to strategically tackle these challenges in a proactive and value-maximizing way. Dan and David identified three categories of businesses facing this crisis: 1. Companies that were struggling pre-COVID. These include oil and gas Restructuring in the Corona Era Immediate Challenges and Opportunities for Growth 01