Basta: It’s all the same people in deals
nowadays, so doing a good job and
building good relationships the first
time helps. The fees of being in court
versus out of court have become so
high that many companies cannot
afford the freight of a large bankruptcy.
Omar Mirza sits on the board of the TMA New
York Chapter and is chair of the chapter’s NextGen.
Next year, Mirza will chair TMA Global NextGen.
Suckow: The biggest change to me
seems to be the investor influence. It’s
hard for us to turn around a company
instead of putting the company through
bankruptcy if you don’t have the time
or patient investors. The rapid velocity
of trading activity has really changed
the position. Historically, the early
warning signs of distress came from
banks. Today, most lenders see the first
sign of trouble and sell the position.
Indelicato: What do you envision for
the industry in the next five years?
Basta: I agree with Holly. I think it’ll
be the middle market in the U.S. The
U.S. and U.K. banks recapitalized
themselves in the last financial crisis,
but a lot of the European banks have
not. At some point, I think they will
have to. I also think the U.S. style of
restructuring is going to go global.
three to four years. Now they are much
shorter. You’ve got to be much more
opportunistic and have really good radar.
Indelicato: How has TMA helped you?
Etlin: The cycles as we go forward
will shorten and shorten. In the future
I think we will be looking at out-of-court or short deals, where the vast
majority of the restructuring occurs
pre-bankruptcy. I think it’ll be a lot
about the middle market and possibly a
few large restructurings, but it’s going
to be about quick, short-turn cases.
Suckow: Normally I could sit here and
rattle off different industries that I think
would produce a lot of opportunities for
our business. But I don’t have that view
today. I think the opportunities are still
strong for our collective profession, as
long as our profession follows the basic
economics of supply and demand. I
think all of you have bright futures in this
industry, but you’ll have to be patient.
We grew up with cycles that used to be
Etlin: I have been involved in a lot of
professional programs, and I feel very
strongly in developing professional
networks if you are potentially going to
work with them. Having this network
can help in moving [between] firms,
as well as when you work with them.
TMA also helped raise my profile. I
started working on committees and then
became a speaker. It’s helped people
in the industry get to know me before
we’ve actually worked together. J
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