Sunday 3 May 2020

Distressed Debt Deals May Rise to 2009 Levels in Crisis-Hit Gulf - Bloomberg

Distressed Debt Deals May Rise to 2009 Levels in Crisis-Hit Gulf - Bloomberg:

The fallout of the coronavirus and oil-price collapse will offer a once-in-a decade opportunity for distressed debt investors in the Persian Gulf, according to Sancta Capital Group Ltd.

“2020 will present us with the most lucrative deep value and distressed debt investment opportunity set since the global financial crisis,” said Ahmad Alanani, chief executive officer of the company, which invests in the debt and equity of under-performing companies. “We have been refining an extensive target list of credits and equities in which to invest opportunistically and we expect that list to continue to grow.”

The retail, healthcare, education and real estate sectors will offer the most opportunities, he said.

The coronavirus is triggering waves of corporate stress and credit rating downgrades as multiple countries enforce nationwide lockdown.

The oil-rich Persian Gulf is facing a prolonged downturn as the pandemic and a historic crash in oil prices add to pressure on already strained finances.

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