President's Letter
Alan D. Holtz, CIRA
Dear AIRA Members:
I step into my new role as President of the Association at a particularly interesting time. The world is in conflict, and distressing events headline the news every day. We have experienced what seems to be an abnormal number of major natural disasters, both at home and abroad. Commodity prices continue to reach all-time highs. Interest rates are moving up. The stock market is jittery. It seems like “perfect storm” conditions for those of us who practice in the restructuring arena.
For at least two years now, I (and many others) have predicted that the bottom will fall out within 12 to 18 months. Yet the market has been flush with liquidity, as debt trading has continued to evolve, private equity and hedge funds are investing in less-traditional ways, large shareholders are taking more activist positions and second lien financings have become the norm. Clearly, this liquidity has helped keep that storm at bay. But how much longer can this continue?
I no longer try to predict when the next major wave of restructurings will be upon us. But I know that it’s on its way here, and when it hits, it will hit big. The rules of the game have changed, both literally (with the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005), and figuratively, as a result of the financing market dynamics noted above. Bankruptcy and insolvency practitioners need to understand these changes and get prepared for the next cycle and the new rules that come with it.
AIRA continues to be one of the leading organizations supporting practitioners in this area. Through our conferences, publications and certification programs, our members have many opportunities to stay current on the latest developments, further enhance their technical knowledge base and network with important contacts. I encourage all of you to play an active role in the AIRA and look forward to serving you and the Association during this interesting time.
Warm regards,
Alan Holtz
AIRA President
Author bio:
Alan Holtz is a Managing Director with AlixPartners based in New York. He has spent close to 20 years as a corporate restructuring and reorganization specialist and has managed all aspects of the financial restructuring process. Alan has provided services to companies, management teams and boards of directors, as well as to financial institutions and creditors’ committees, across a wide variety of industries. A frequent speaker on the subject of bankruptcy and reorganization, Alan holds a bachelor’s degree in economics from the Wharton School of Business at the University of Pennsylvania and is a CPA and a CIRA, for which he received the 1992 CIRA silver medal from AIRA.