May Edition 2020

operators and service providers, restaurants, and certain retail outfits. COVID may represent a “tipping point” for these companies; and while the crisis may actually provide temporary relief (as lenders and landlords face challenges in exercising remedies), ultimately the fundamental pre-COVID business challenges have not changed—and were only exacerbated by the crisis—and these companies will need to reorganize or otherwise restructure their assets and liabilities in the near term. In- court restructurings that were already underway have, in many cases, also been temporarily stalled, but will likely pick back up in the near future. 2. Companies that have seen an uptick in business during the crisis. These industries are the exception, to be sure, but certain industries fromdigital entertainment to healthcare to certain other consumer businesses have been able to capitalize on the “stay at home” restrictions across the globe. Certain COVID-related habits and trends may have a lasting impact and enable these companies to continue to grow post-crisis, or, at the very least, avoid the need to undergo any sort of meaningful restructuring post-COVID. 3. Otherwise healthy companies that are facing distress as a result of COVID. This category, of course, comprises the largest number of businesses, from tourist economies and the travel sector, to real estate enterprises and financial institutions. Key Takeaways and Best Practices In this environment, a firm’s restructuring group will be heavily relied on, not only during the present crisis but for months to follow as the impact of the crisis more fully unfolds. Dan and David identified several takeaways and best practices for professionals in these groups: 1. Encourage clients to engage key constituencies immediately. Clients that have not already reached out to lenders, landlords and key vendors and suppliers should, in consultation with their professionals, begin those discussions immediately. Most parties in interest have a stake in a company’s long-term operational viability and will work cooperatively, particularly in this environment, to reach a consensual resolution on a range of issues. 2. Stay current on governmental relief programs. Governments across the globe are enacting and implementing emergency relief programs to enable businesses to stay afloat during this crisis. Professionals must quickly learn and understand the implications of these new programs and how they may be helpful to their clients; the first-movers will likely 30