ASX: US funds are poised to swoop on troubled listed companies, according to White & Case

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White & Case restructuring partner Timothy Sackar said he expected Australia’s sharemarket to become a hunting ground for cash-up private funds.

The ASX is set to become a hunting hotspot for private money as cashed-up global funds zero in on distressed companies.“We continue to see listed companies in a number of sectors finding themselves in trouble,” Mr Sackar toldGlobal law firm Case & White are putting the finishing touches to floors 49 and 50 of Governor Phillip Tower while also bringing in a team of financing, restructuring and insolvency specialists lead by partners Brendan Quinn and Timothy Sackar .

Mr Sackar said two important themes were coming together to jumpstart ASX de-listings – the depressed economic environment driving down earnings and a huge amount of private capital needing to be deployed.Plus, the rising US dollar is making Australia even more attractive for US-based capital providers like Bain Capital, Oaktree Capital and Centerbridge Partners.for $8.9 billion.

White & Case partner Brendan Quinn adds: “There’s a lot of capital sitting back waiting for this to occur. They may have looked at the company where it wasn’t insolvent, and I think it’s a lot easier to buy from the administrator.”Mr Quinn said he expected to see the number of renewables players to shrink via front-end mergers & acquisitions or restructures on the bumpy road to net-zero.“There are currently dozens of players...it’s going to be a lot less in years to come,” he said.

 

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