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The number of mandates awarded to insolvency professionals across Asia Pacific (ex-Japan) in 2024 declined year-over-year (YoY) for the second consecutive year, due primarily to a continued drop in new roles in China—the region’s largest source of advisory work since 2020.

The Asia Pacific (ex-Japan) market recorded 220 advisory mandates in 2024 (down 3.9% YoY), tied to USD 149.2bn of debt (down 4.5% YoY). By comparison, 2023 saw 229 mandates on USD 156.2bn of debt. In 4Q24, the number of mandates and the associated debt dropped sharply — 52.4% quarter-on-quarter (QoQ) to 30 mandates and 77.6% QoQ to USD 8.8bn debt. The number of mandates awarded in 4Q24 is the lowest quarterly tally since Debtwire began keeping records in 1Q16.

Chinese Real Estate

Mandates in the Chinese real estate sector fell 36.9% YoY to 65 in 2024 (2023: 103). Although these mandates represented only 29.5% of the region’s total new roles, they were tied to USD 111.5bn of debt, accounting for 74.7% of the total debt advised on in 2024.

The decline in number of mandates reflects the dearth of new Chinese property-related restructuring situations, as the wave of distress that began in the second half of 2021 has already engulfed a huge portion of companies in this sector. As per Debtwire’s Restructuring Database, since July 2021, 63 Chinese property companies that have issued offshore bonds have either defaulted on their offshore debt obligations, engaged in a workout process, or both.

Of the 65 mandates handed out by companies in the Chinese property sector in 2024, only 21 engagements were related to four situations that year. The remaining 43 mandates were for 19 situations that began prior to the start of 2024.

All China

Chinese companies in sectors other than real estate accounted for 36 mandates in 2024 (up 20% YoY from 30 in 2023) and involved USD 10.3bn debt (down 61.7% YoY from USD 26.9bn in 2023). These mandates stemmed from 18 non-real estate situations, compared to 15 non-real estate sector situations in 2023.

In 4Q24, new mandates from China for all sectors, including real estate, dropped significantly QoQ to 12, from 28 in 3Q24. The real estate sector was responsible for eight of the 12 mandates, which involved USD 5.1bn debt and stemmed from five situations.

Two of these situations — China South City Holdings and Guangzhou R&F Properties — began in 2024 and represent attempts to restructure debt that had been previously restructured.

Ex-China

Ex-China advisory roles totalled 119 mandates (up 24.0% YoY) on USD 25.4bn of debt (up 6.9% YoY) in 2024, compared to 96 mandates on USD 23.7bn in the previous year. By number, ex-China mandates accounted for approximately 54.1% of the region’s 220 new advisory roles in 2024, but only 17.0% of the total USD 149.2bn of debt being advised on.

The YoY increase in ex-China insolvency-related advisory appointments was primarily driven by a significant surge in mandates in Indonesia, Australia, and India.

Indonesian situations accounted for 41 new roles (18.6% of the total) in 2024, while Australia contributed 37 and India 28. By comparison, these countries accounted for 17, 24, and 24 mandates, respectively, in 2023.

Additionally, Maldives and Sri Lanka each recorded one mandate in 2024, after having no mandates in 2023.

Conversely, four jurisdictions experienced YoY declines in new mandates during 2024. Singapore saw the steepest drop, with only six mandates compared to 22 in 2023. Vietnam recorded two mandates and Hong Kong three, each declining by one compared to the prior year. Malaysia, which had two mandates in 2023, recorded none in 2024.

Indonesia

In 2024, Indonesian situations generated the second-largest number of mandates in the region. The 41 new roles (up 141.2% YoY from 17 in 2023) were tied to USD 3.1bn of debt (down 14.7% YoY from USD 3.6bn in 2023) across eight situations (up 100% YoY from four in 2023).

More than half of these mandates (21 roles) were related to four real estate companies, including Lippo Malls Indonesia Retail Trust (LMIRT). LMIRT accounted for 10 new roles—exclusively company-side—for its two completed liability management exercises: a distressed tender for its USD 148.6m, 7.5% notes due February 2026, and a distressed exchange for its USD 138.4m, 7.95% notes due June 2024.

The other three real estate companies that provided mandates were Agung Podomoro Land, Modernland Realty, and Lippo Karawaci.

Outside the real estate sector, Indonesian textile companies also provided opportunities for restructuring professionals in 2024, generating 13 mandates. This included nine roles tied to Pan Brothers’ court-supervised PKPU process and four related to Sri Rejeki Isman (Sritex) and its liquidation process.

In 4Q24, the number of new mandates in Indonesia rose sharply to nine, following just one mandate in 3Q24. These nine roles included four from Sritex, four from Modernland Realty, and one from Pan Brothers.

Australia

Australia experienced a significant increase in new restructuring advisory mandates in 2024, due to a significant increase in new situations in 1Q24 and 3Q24, when the number of new roles reached double digits. For full year 2024, Australia accounted for 37 engagements stemming from 13 situations, compared to 24 roles from six situations in 2023.

Of the 13 situations, two involved debt exceeding USD 1bn: WICET Holdings and Healthscope.

Top advisors

Deloitte topped the financial advisor league table in 2024, securing 11 roles involving USD 20.5bn of debt. Its engagements included serving as financial advisor to creditors of Indian conglomerate Jaiprakash Associates, Australian air carrier Regional Express Holdings, and China’s XJ International (formerly known as Hope Education Group Co Ltd).

Deloitte also acted as financial advisor in four Chinese real estate situations (China South City, Country Garden, Dexin China and Jiayuan International), as a liquidator in three cases (China Oceanwide, Falcon Energy and Xiwang Special Steel), and as a receiver over the assets of Agile Group.

FTI Consulting ranked second by mandate count in 2024, with eight roles involving USD 7.9bn of debt. These included acting as a receiver in five Australian situations, as company-side financial advisor for Yuzhou Group Holding, and as creditor-side financial advisor for creditors of China SCE Group and Powerlong Real Estate.

Kroll came in third with seven engagements in 2024 on USD 20.6bn of debt. It served as financial advisor for three companies — Agung Podomoro Land, Modernland Realty, and WazirX. Both Modernland and Wazir restructured their debt via Singapore schemes of arrangement.

Additionally, Kroll acted as liquidator for Chinese developer Dexin China and Singapore-based Pearl Holdings III and as receiver for one of the operating companies of Brightoil Petroleum. Kroll was also mandated by Country Garden to conduct recovery analysis for its proposed restructuring plan.

By debt volume, Alvarez & Marsal came in first place among financial advisors in 2024. Alvarez advised on USD 55.3bn of debt, of which USD 38.9bn stemmed from its role as liquidator for Chinese developer China Evergrande Group. The firm handled five advisory roles during the year, all linked to debt restructurings in the PRC real estate sector.

Linklaters topped the 2024 legal advisor table with six roles involving USD 20.4bn of debt. Five of these roles were tied to Chinese real estate developers’ debt restructurings. Linklaters also advised an ad hoc group of bondholders for Chinese oil services company Hilong Holding’s restructuring of its USD 314m due-November 2024 bonds.

Three law firms — King & Wood Mallesons, A&O Shearman, and Clifford Chance — all tied for second with five mandates each, though with notable differences in debt volume advised on as follows:

• King & Wood Mallesons advised on USD 21.6bn of debt. This included USD 15.9bn for its roles as administrator for Jinke Property Group, Jiangsu Delong Nickel Industry, and Sichuan Trust; USD 3.7bn as legal advisor for Sino-Ocean‘s offshore bond trustee; and USD 2bn as legal advisor for Australia-based WICET Holdings.
• A&O Shearman advised on at least USD 682m of debt for its five roles, which included representing creditors of Agile Group and Times China, bond trustees of Redsun Properties Group and XJ International, and the dealer manager for Lippo Malls Indonesia Retail Trust in its distressed exchange.
• Clifford Chance, which advised on at least USD 570m of debt, acted as legal advisor for bondholders/creditors of Quintis, Suning Appliance Group, Pan Brothers, and Agung Podomoro Land. It also advised the administrator of Australia-based debt-collecting company PF Group Holdings.