In the midst of the domestic and worldwide economic crisis, a number of key factors have emerged. Some of these are familiar to those of us who have advised through previous recessions, others are particular to the current predicament.
First, the unprecedented collapse of major financial institutions globally has had knock-on effects for companies (including some household names) in a wide range of sectors including retail and construction. As a result, parties have sought to exit contracts which are no longer commercially attractive or, conversely, have experienced difficulties arising from enforcing contractual obligations against counterparties also in financial difficulties. Second, directors have found themselves put in the spotlight and had their management decisions questioned by regulators, shareholders and investors or liquidators where their companies have failed.
