Cash is king across the globe as corporates tighten their belts
Nearly 50% of the surveyed companies had disposed of or shut down parts of their business and 43% were looking at alternate short term finance facilities whilst 23% were considering options to renegotiate their debt covenants as well as proactively communicating with lenders, analysts and rating agencies are considering renegotiating debt covenants.
Barely a quarter of the surveyed said the availability of cash was not an issue.
“This is an important snap shot of global corporates already facing up to a credit crunch and thinking how to respond to a recession. But the business world has experienced serious downturns before and there are opportunities to learn from past crises. There will inevitably be losers over the next 12 months but equally there will be a significant minority of clear winners,” said Mark Otty (photo), Area Managing Partner of Ernst & Young EMEIA.
Barely a quarter of the surveyed said the availability of cash was not an issue.
“This is an important snap shot of global corporates already facing up to a credit crunch and thinking how to respond to a recession. But the business world has experienced serious downturns before and there are opportunities to learn from past crises. There will inevitably be losers over the next 12 months but equally there will be a significant minority of clear winners,” said Mark Otty (photo), Area Managing Partner of Ernst & Young EMEIA.