INSOL International has approximately 12,000 members from over 108 countries. It is the world's foremost recognized insolvency and restructuring organization and is highly regarded by all stakeholders who have an interest in insolvency and restructuring of distressed companies. INSOL is highly influential in policy setting as well as establishing international best practice for all of its members in multiple regions across the globe. INSOL has 43 member associations worldwide, and SARIPA is the 5th largest member organization of INSOL International. Africa remains the fastest-growing region with a net increase in membership of 21% since 2021.

26 South Africans and several hundred delegates from around the globe attended the World Insolvency Conference hosted by INSOL International in San Diego, USA, from May 22 to 24, 2024. Delegates attending the conference included insolvency and restructuring practitioners, lawyers, financial advisors, distressed debt funds, regulators, and a number of stakeholder representatives involved in the insolvency and restructuring profession. I attended the conference together with our COO, René Bekker.

See the Conference Highlights video

Topics debated and discussed in San Diego included the impact of AI on the profession, the approach to investigations and asset tracing in insolvency, the future of crypto, managing issues of liability in insolvencies, the art of negotiating with stakeholders in the distressed environment, the impact of disruptive trends on the restructuring of companies, and the prospects of investing in distressed businesses. The quality of the presenters and speakers participating in the panel discussions was of exceptionally high quality, with cutting-edge issues being discussed and debated.

Every year, delegates gather to discuss important issues affecting the insolvency and restructuring profession. This year was no different, with INSOL San Diego attracting over 750 delegates.

South African delegates attending the conference (insolvency practitioners, business rescue practitioners, and their advisors) were exposed to panel discussions and keynote presentations on cross-border insolvency, where international experts shared ideas and thoughts on restructuring and insolvency regimes operating in multiple jurisdictions across the globe.

One of the issues highlighted at the conference, which is of concern to boards of directors and creditors, is the ever-increasing threat of corporate distress and uncertainty, which affects the future of viable and ongoing trading of many entities worldwide. Financial constraints facing companies are a common feature in many international jurisdictions, and where directors are often faced with ever-increasing pressure to consider a formal restructuring process such as rescue, administration, or if these processes are not feasible, bankruptcy/liquidation of the company.

Directors worldwide sometimes need to make the difficult decision to bring in independent advisors, and where they are faced with the prospect of handing over control of the company and its future to an outside (independent) third party who will attend to the supervision of the company's affairs in its restructuring process.

Once appointed, the restructuring advisor is faced with a daunting task, that is to propose a plan or outcome to all stakeholders, which might very well include a compromise of creditor claims, a restructuring of the manner in which the company trades, and a possible reorganization of management and the board of directors. All in all, a major upheaval often takes place and which is necessary if one is to ensure that the company actually survives its restructuring process.

The role and expertise of insolvency practitioners (administrators, trustees, liquidators, and business rescue practitioners) and the manner in which they can assist in the restructuring of companies that might be on the brink of insolvency become all the more important.

The way insolvency practitioners approach their appointments in distressed companies and deal with directors that are increasingly resistant to intervention is challenging and not for the faint-hearted. This was highlighted at the INSOL Insolvency Practitioner's Group (INSOL IPG) session held on the Wednesday before the start of the conference. The approach to modern-day restructuring of insolvent companies was discussed and debated by those attending. All agreed that insolvency mandates require a unique skill set on the part of the practitioner and where crisis management and people skills are becoming paramount if that practitioner wants to successfully restructure a company's affairs, its debt, and in order to avoid a full-scale insolvency/bankruptcy.

All in all, INSOL San Diego provided an excellent forum for SARIPA members to attend informative sessions on insolvency practice, to learn from the manner in which our international counterparts approach restructuring mandates, the way they interact with stakeholders, and where the objective for insolvency professionals in all jurisdictions is to achieve the best possible outcome for creditors, the company, its employees, and stakeholders. In addition to the formal conference content, INSOL San Diego, most importantly, provided those attending with an opportunity to network, meet up with old colleagues, and meet new ones. A very worthwhile and beneficial experience.

Dr Eric Levenstein
SARIPA Chairperson