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Greg Charleston: Year In Review – Turnarounds & Workouts

Greg Charleston was interviewed by Turnarounds & Workouts.

Question: Overall, what did restructuring activity look like in 2016?

“Chapter 11 filings increased. However, Chapter 11 is costly and has become a very inefficient way to restructure a business and has deterred bankruptcy filings in many cases. Furthermore, the availability of cheap credit has allowed companies to refinance debt and opt for out-of-court restructuring approaches.”

Question: How significant is the prolonged environment of cheap credit?

“The low interest rates have been driven, in part, by the Fed maintaining a federal funds rate at near zero. It seems that the Fed has continued to find new excuses not to raise the federal funds rate. The fundamentals of having a federal funds rate of essentially zero for nine years are nonsensical. This bizarre time in American history will be studied and criticized by economists for years to come.”

To read his entire interview, click here.