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Adam Gallagher, Partner and Head of Simpson Thacher’s London-based Restructuring team, and Restructuring Partner James Watson were quoted in The In-House Lawyer in an article discussing the U.K.’s difficult market conditions and high rate of insolvencies and the steps businesses should take to address these challenges. When discussing recent market disruption, Adam noted that all industries are facing the same macro impacts, including high interest rates, inflation and labor shortages. He further observed that “SMEs are being hit hard – whereas the bigger institutions have generally had some insulation.” Reflecting on the refinancing market and the increasingly large role that credit funds play, James pointed out that, “Many lenders have been built to buy and sell out of loans, not run businesses and it would be disadvantageous to their businesses to do so.” Looking to the future, Adam predicted that the expensive debt market is likely to persist for a while and warned companies to keep this in mind when considering refinancing options.

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