The war in the Middle East and surging energy costs are set to exacerbate soaring levels of financial distress among European companies, according to Alvarez & Marsal. “The escalating conflict in the Middle East is likely acting as a multiplier for the distress we are already tracking across the European landscape,” said Chris Johnston, a managing director in the consultancy firm’s European restructuring team. Referencing the surge in oil and gas prices, Johnston said: “This directly erodes the purchasing power of the European consumer, further destabilizing retail and other consumer focused sectors that are already struggling with market share erosion and high debt-servicing costs.”
