of the previous administration and that is now causing
some distress in the clean energy space.
You mentioned the elephant in the room — the
Trump Administration. How much impact do you
think Trump’s proposed policies will have on the
Good question! I’ve had a lot of UK folks joke with
me that the Trump effect is big — far bigger than Brexit
even. We’ll have to see whether that’s true or not, but
it’s pretty clear that certain industries under Trump are
going to be impacted, like healthcare and clean energy,
as I mentioned.
Tax reform is another area that could have a major
impact on restructuring activity in different industries.
Probably the biggest impact in that area is the proposed
border adjustment tax by the Republican majority in the
House of Representatives — if they do it at all — and
what the transition rules will be. That could have an
impact on a broad swath of industries: The auto industry
and the retail industry are two that readily spring to
mind as being particularly vulnerable to such a tax. The
problem with tax reform and the border adjustment tax,
as proposed under the House plan, is that rather than
having a broadly similar impact across the corporate
sector, it results in industries that are clear winners and
losers. This is especially true with the border adjustment
What are some of the trends you’re seeing in the
near term with regards to restructuring in the U.S.?
Over the last couple of years we’ve had huge waves
of restructuring activity in two industries that are now
ebbing. The energy sector went from a torrent of restructuring that was dependent on falling oil prices to more
of a ripple recently with the modest rebound of prices.
That’s had a notable impact on the overall volume of
restructuring. The other is mining, which has largely run
its course — that’s true for both the U.S. and Australia,
of course. Commodity prices had been near all-time
lows, and they have since rebounded as well. So far in
2017 no other industries have seen a pickup in distress
sufficient to offset moderating restructuring activity in
these two sectors.
Which U.S. industries are attracting more
We’re seeing a lot from retail since 2016, which
will be a long-run story. More brick-and-mortar chains
will experience distress as online shopping grabs more
market share and consumers change their spending
priorities. There’s also healthcare and clean energy.
With clean energy, there’s the prospect of government
subsidies coming to an abrupt end under the new presidential administration. There was already some natural
winding down in the sector because of the departure
The Rise of U.S. Style
As the U.S. system of restructuring and insolvency gains popularity in Australia and beyond, Carlyn
Taylor, global co-leader of the Corporate Finance & Restructuring segment of FTI Consulting, provides her
perspective on this growing trend in a Q&A that originally appeared in the FTI Journal.
Corporate Finance &