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  "documentTitle": "Distress Alert July 2024",
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  "authorName": "Alvarez & Marsal",
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      "text": "The ADA shows that more than a quarter of companies lack balance sheet robustness.",
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      "text": "Distress in %: 8.9%",
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      "text": "The impact of higher inflation on asset collateral's valuations has largely delayed the need for restructurings. However, as inflationary pressure eases and interest rates decline at a slow pace, more restructuring activity is expected across the region.",
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      "text": "Not only has Ebitda generation significantly deteriorated, but businesses are also being challenged by highly leveraged balance sheets that were built during a period of zero interest rates and strong market performance. The ADA shows that more than a quarter of companies lack balance sheet robustness. As a result, many are squeezing working capital balances to manage cash flows and meet large debt burdens.",
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      "text": "Although corporate distress has stabilised in the two Middle East countries included in our analysis (Saudi Arabia and United Arab Emirates), the latest data indicates an increase in the number of companies lacking performance in those markets.",
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      "text": "This reflects an environment of weakened consumer demand both regionally and in the region's key export markets, coupled with persistent inflation and supply chain disruptions that are increasing input costs and compressing margins.",
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