This newsletter addresses the current state and outlook for the Deloitte T&R practice, including recent engagements, announcements, case studies, and upcoming events. Check out the latest highlights to stay on top of corporate restructuring trends and make the most of the game-changing moments.
Views from our leaders
The restructuring market entered 2025 with a noticeably different tone from the cautious optimism that characterized the post-pandemic period. Persistently higher interest rates, continued cost increases, and a pronounced pull-back in traditional lending and consumer spending have squeezed liquidity across the credit spectrum, propelling a steady rise in both formal insolvencies and out-of-court workouts and culminating in downward revisions to Q1-25 GDP. Distress is not confined to single sectors; it now extends from discretionary retail, to health care—particularly rural medical centers—to high burn-rate leveraged technology and life-sciences businesses that have historically relied on inexpensive venture capital (VC) to fund growth.
Several themes are shaping deal dynamics. First, liability-management transactions (LMTs or LMEs)—drop-downs, up tiers and recapitalizations—are proliferating as sponsors seek to protect value ahead of a refinancing wall expected to start in late 2025.1 Second…