Marcus Ayres

Kroll Advisory Ltd

Sydney www.kroll.com

marcus.ayres@kroll.com Tel: +61 414 226 224

Biography

Marcus has over 20 years of experience in corporate restructuring and distressed debt advisory assignments, including over 15 years cross-border restructuring experience covering North America, Asia and Europe. Marcus’ expertise includes the development and implementation of turnaround solutions for corporates in high-stakes situations, advising boards, government and creditors in distressed situations and developing and implementing restructuring solutions for hedge funds, private equity and banks with investments or lends into distressed entities

What inspired you to pursue a career as a restructuring and insolvency expert?

When I was in my final year of university, we had a major insolvency proceeding start in Australia. It had considerable political, financial and community impact and gained significant media attention. Watching this process unfold was fascinating and it instantly drew me toward it as a profession.

What aspect of your practice do you enjoy most, and why?

I love the negotiation. The strategy and positioning required can be like a threedimensional chess board.

How does your experience in formal insolvency appointments enhance the skills and approach you bring to practice?

It’s always important to understand the second way out when attempting to conduct a restructuring. This helps to manage expectations and approach negotiations. Whilst formal insolvency is sometimes inevitable or unavoidable, knowing first-hand how value can be destroyed by formal processes is essential to navigating counterparties in a restructure.

What unique challenges do cross-border or multi-jurisdictional insolvencies pose for practitioners?

Being able to understand and manage different cultures has a significant influence on how effective and efficient a multi-jurisdictional workout can be. Understanding the stakeholder environment is naturally important, because it doesn’t always follow that the objectives and agendas of stakeholders in different counties, or even how they approach a negotiation, will be the same as your own. Which sectors have received the largest restructuring wake-up call from the global coronavirus pandemic, and how are they addressing the issues created?

Covid-19 has simply accelerated change in sectors that already appeared to be in focus. Locally we see the health and aged care sectors directly impacted by covid-19. Indirectly, supply chain issues and shipping costs are causing substantial problems, particularly in sectors such as construction and infrastructure.

What are some of the challenges posed by inter-creditor issues in restructuring, and how can they be effectively addressed in your experience?

Not irregularly inter-creditor documents have a drafting issue or don’t cater for the unique situation unfolding. Bringing expectations back into line with reality and getting pragmatism is always a challenge.

How can clients prepare themselves for changes in credit market dynamics, if debt becomes increasingly expensive and less available?

Whilst the cost of capital is increasing, there are many other external forces which are already taking hold which require actions and which will help manage higher debt costs. Operational improvement/costout programmes will need to be the next major focus for business.

How do you see your practice developing over the next few years?

I am focused on moving up the curve and deploying my skills earlier than is traditionally the case. I also expect to see movement into sectors which will have stranded assets given the changes taking place globally.