Asian markets are bracing for a surge in restructuring activities in 2025, according to the latest survey by AlixPartners. The survey highlights that 92% of restructuring professionals in Asia anticipate geopolitical disruptions, such as elections and conflicts, will lead to increased distressed situations. This is expected to result in a rise in out-of-court restructurings and distressed mergers and acquisitions (M&A) as companies seek alternatives to formal insolvency proceedings.
The survey identifies Greater China as the region most likely to experience financial restructuring in the next 12 months, with 33% of respondents expecting significant activity. Singapore and Japan follow closely, each with 22%. Commercial Real Estate and Financial Services sectors are predicted to face the most distress, with 39% and 35% of professionals, respectively, highlighting these areas.
Despite these challenges, 81% of respondents foresee economic growth in Asia over the next year. This optimism is bolstered by expectations of increased capital availability, with 60% predicting a rise compared to the previous year. Private credit is anticipated to play a significant role, with 64% of respondents expecting its growth as companies seek diverse financing options amidst rising interest rates.
Lian Hoon Lim, Partner & Managing Director at AlixPartners Singapore, noted the impact of US geopolitical dynamics on Asia, stating, “The persistent volatility emanating from the United States… has clouded the global economic outlook, putting organisations in limbo.”
The survey underscores the need for Asian companies to navigate liquidity challenges, debt management, and technological investments to emerge stronger from current uncertainties.
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