HSBC Creates Coronavirus-Focused Restructuring Unit
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HSBC is forming a global restructuring team targeting corporate clients affected by the coronavirus pandemic.
Patrick Nolan has been named head of client leadership to lead the new team, relinquishing his previous role as global head of corporate banking, according to a report citing an internal memo.
Also joining are Gregory Guyett, co-head of global banking and markets, and Barry O’Byrne, global head of commercial banking, who were tasked by chief executive Noel Quinn to help assemble the team. HSBC’s chief risk officer Pam Kaur will also reportedly join the new restructuring unit.
The internal announcement of a new global restructuring team coincides with the recent news of debt troubles from oil trader Hin Leong which has been hit by turbulent commodity prices. The Singaporean reportedly owes a total of $3.85 billion to 23 banks including $600 million to HSBC, the lender with the largest exposure to the firm.
The coronavirus pandemic and rough negotiations at OPEC have created a volatile environment for the oil market in 2020. Year-to-date, brent crude prices have plunged over 56 percent.
Questions & Answers
Q.What is the primary purpose of HSBC's new restructuring unit?
What is the primary purpose of HSBC's new restructuring unit?
The new unit is being formed to assist corporate clients who have been negatively impacted by the coronavirus pandemic. It will focus on restructuring services for these businesses.
Q.Who will be leading HSBC's new global restructuring team?
Who will be leading HSBC's new global restructuring team?
Patrick Nolan has been appointed as the head of client leadership for the new team. He previously served as the global head of corporate banking.
Q.Which specific company's debt issues are mentioned as coinciding with the unit's formation?
Which specific company's debt issues are mentioned as coinciding with the unit's formation?
The announcement coincides with news of debt troubles from oil trader Hin Leong. HSBC reportedly has a significant exposure to this firm.
Q.What roles do Gregory Guyett and Barry O'Byrne hold and what is their involvement?
What roles do Gregory Guyett and Barry O'Byrne hold and what is their involvement?
Gregory Guyett is co-head of global banking and markets, and Barry O’Byrne is global head of commercial banking. They were tasked with helping to assemble the new team.
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