Completed distressed and bankruptcy restructuring activity totaled $22 billion in the first quarter of the year, which marks a 6.8% decline from the same period in 2013, according to Thomson Reuters. The number of completed transactions totaled 52, a 49.5 percent reduction from Q1 2013.
U.S. distressed and bankruptcy deal activity totaled $4.5 billion in the first quarter, a 26.2 percent decreased from the same period last year. There were 22 restructuring transactions announced in Q1, a 51.1% drop from the previous year. The materials sector was the leading distressed sector in the U.S. in Q1 with a 66% share of the domestic restructuring market.
Europe, Middle East and Africa (EMEA) distressed debt restructuring volume totaled $16.6 billion in the first quarter, which is a 13.7% increase in activity from Q1 2013. Financials was the leading distressed sector in the EMEA region with 60 percent of the completed deal volume.
Asia Pacific, including Japan, deal volumes in the first quarter totaled $1.7 billion. This is a 71.2 percent reduction from the same time frame last year. The materials sector was the most active part of the market for the region, with a 49% market share.
The industrial sector was the leading global distressed sector with more than 35 deals worldwide in Q1. The media and entertainment sector was the second most active sector followed by consumer products and services, retail and materials.
The largest restructuring deal completed in Q1 was the Dubai Group, which had $10 billion in restructuring volume. This was followed by Hibu PLC with $3.5 billion and WR Grace & Co. with $2.57 billion.
Lazard was the leading advisor in the global completed restructuring rankings and Moelis & Co. was the leading advisor for global announced restructurings.