COVID-19 has impacted economies throughout the world, creating demand shocks in many industries. The travel and leisure sectors experienced a near collapse, with revenue declines of more than 30 percent and a steep fall in profitability. Other sectors, such as automotive, were hit hard but managed to recover during the year. And the retail and electronic sectors remained relatively stable.

Government aid programs aimed at affected companies, together with other sources of capital such as bank loans or private debt, have managed to help troubled businesses in many instances but have also left many companies highly vulnerable – particularly as their debt burden comes due. (See Exhibit 1.)

So, how has the restructuring ecosystem changed in the wake of COVID-19? What should be on the agenda of corporates as they emerge from the crisis? And what role can governments play in facilitating economic recovery? Our Restructuring Report 2021 sheds light on these and other topics.