Carlos Abadi Joins Panel at TMA Brasil Conference
New York, NY – Carlos Abadi - ACGM’s President and CEO – today joined a panel of five industry experts at the VII TMA - Turnaround Management Association – Brasil Conference on Corporate Recovery & Turnaround. This year’s two-day conference - subtitled Crisis: Lessons, Changes & Turnaround - took place against the backdrop of Brazil’s ongoing economic recession. The event - held at the Renaissance São Paulo Hotel - was especially timely as commentators expect a flurry of bankruptcies and restructurings to result from the economic downturn.
The global collapse of commodity prices has hit Brazil’s commodity-driven economy hard, by largely reversing the output gains achieved through the real exchange rate appreciation which followed the commodity price boom cycle. Brazil finds itself in a stagflation trap which has negatively impacted households’, corporates’ and banks’ balance sheets. Furthermore, the tight monetary stance adopted by the CBR to anchor inflation expectations reduces the incentives for either a spending or investment-led recovery in the short run. Tight monetary policy notwithstanding, the weakness of the Real has significantly increased the corporate sector’s leverage. Finally, the Petrobras scandal has also impacted the oil & gas giant’s many suppliers and contractors. Industry experts agree that there will be increased financial restructuring activity in the coming months and the crisis will test Brazil’s restructuring and bankruptcy legal framework – the latter of which was reformed in 2005. There is also likely to be a plethora of opportunities for investors specializing in distressed investments.
Mr. Abadi’s panel focused on the development of secondary markers for defaulted loans. An area that will gain importance as specialist hedge funds, including U.S and Europe funds, move in to take advantage of distressed plays. He was joined by moderator Alexandre Camara, Partner at BTG Pactual and fellow panelists: André Suguita, Managing Director, Bank of America Merrill Lynch; Guilherme Ferreira, Partner, Jive Investments; Luiz Fabiano Saragiotto, Director, Deutsche Bank; and Nicolas Malagamba, Head of dedicated global Portfolio Advisory Group (PAG) for Brazil, PwC.
Other panels and topics of discussion at the conference included: Economic and Political Perspectives in Brazil; Consolidation of Companies in Judicial Recovery; Investing Opportunities; The Evolution of US Restructuring Tools; International Insolvency; Early Turnaround; Lava Jato; 10 Years of the Bankruptcy Law in Brazil; and Interim Management.
ACGM’s restructuring and bankruptcy professionals have decades of experience in Latin America and have worked on ground-breaking restructuring deals, such as the first pre-packaged Chapter 11 debt restructuring in Latin America and the first U.S. Chapter 11 reorganization by a Central American issuer. ACGM is the ideal partner for Brazilian corporate issuers seeking capital and restructuring solutions amidst the current crisis. ACGM professionals have advised on restructuring transactions worth many billions of dollars and possess deep technical and analytical skills, enabling them to provide high value solutions to complex capital structure issues. In addition to offering decades of restructuring experience and knowledge, through its global relationships, ACGM provides access to key debt and equity finance sources. ACGM is well positioned to introduce overseas institutional investors to compelling investment opportunities within Brazil.
About Abadi & Co.
Founded in 1991, Abadi & Co. is an investment banking boutique which specializes in three core areas: emerging markets, financial institutions and restructuring & special situations. By focusing on these three areas of expertise, Abadi & Co. has built a team of independent specialists–Fluent in Finance®–who serve as powerful advocates for clients, focused on protecting their financial interests and delivering practical, high-value financial solutions. The Abadi & Co. team prides itself on its ability to guide clients through difficult and groundbreaking transactions, even in situations where the structuring complexities and challenges would have thwarted others.
Abadi & Co.’s experienced team works on a range of transactions, including mergers & acquisitions, debt & equity capital markets issues and recapitalizations. It caters to a global client base which includes companies, governments and financial institutions, across North America, Latin America, Europe and the Middle East. The firm’s specialization approach means that it only takes on engagements if they fall within one or more of its core areas of expertise, allowing it to assign a strong team to every engagement, providing clients with the attention and intellectual capital they deserve. The firm’s clients appreciate having direct access to a senior banker 24/7; they value the discretion of Abadi & Co.'s smaller team and are relieved of the conflict of interest concerns inherent in working with larger investment banks, which often look to cross-sell other products and services. In order to prevent conflicts of interest, and to ensure the independence of the firm's advice, Abadi & Co. does not conduct trading or manage investments.
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