Large-scale insolvencies and restructurings have been largely absent from the UK market over the past few years. However, lawyers working in this area are having to get to grips with a number of new factors that have changed the way they go about their work.

Pre-pack administrations have come under criticism lately for being less than transparent, leading some in the recovery community to suggest that ‘debtor in possession’ funding would be a good alternative. Pensions are never far from the headlines and are playing an increasingly important role in restructurings.

Finally, as banks structure more complicated debt packages, the types of credits have changed and diversified, which will have an impact on any future restructurings. And although financial markets are still providing a soft landing for most highly leveraged companies, lawyers expect the credit crunch to come sooner rather than later.