Summit Notebook

Exclusive outtakes from industry leaders

from Funds Hub:

The morgue after Christmas

Around this Christmastide banks will begin to take a strict approach to companies running out of money, according to Simon Davies, managing director of The Blackstone Group.  



He said at the Reuters Restructuring Summit in London that by the end of the year banks will issue "in patient", "out patient" or "morgue" judgements as they go about the business to decide who gets much needed loans and who does not.

Christmas Carol singers

Christmas Carol singers

They will do it with the same inexorable cool as the Spirit of Christmas Yet To Come in "A Christmas Carol." And it looks like this character will be the only one borrowed from Dickens' tale of hope.

If Davies is right, the only Charles that will shape corporate events this winter will be Darwin rather than Dickens. Leverage per se will not be seen as a morgue attribute though -- it will be working capital flows that make or break a company.