With credit markets expected to remain tight, Blackstone Group LP's Steve Zelin predicted that the current cycle will differ from past downturns since "companies have limited options as to how they fix their balance sheets [due to lack of credit financing]."
"Unlike years ago, where you had a lender/borrower relationship, and you could sit down with a small number of people and do a workout, now there are many tiers of parties involved," he continued. "The restructurings we'll see in the next 12 to 18 months will be different from the ones we've seen in the last cycle."
Cadwalader, Wickersham & Taft LLP's Bruce R. Zirinsky agreed, and he added, "One factor that makes this different from past down cycles is that U.S. assets are increasingly cheap to foreign investors due to the deflating dollar." Zirinsky continued, "I think we will see greater participation this time around from foreign investors." - George White
See more stories from Argyle Executive Forum's 2008 Leadership in the Distressed Markets conference
