What happened
Corporate insolvencies in Asia increased by 39% in 2025, with major financial hubs Hong Kong and Singapore reporting 33% increases. An AlixPartners report highlighted four primary warning signs of financial distress: decreasing access to quality capital, EBITDA-to-cash mismatches, missed operational targets, and senior management churn.
Why it matters here
Widespread regional corporate distress poses risks for Australian businesses and investors relying on Asian trade flows and supply chains. Monitoring EBITDA-to-cash conversion and senior leadership stability serves as a vital screen for credit and counterparty risks across Asia-Pacific holdings.
What to watch
Watch upcoming regional corporate financial reports for widening cash conversion gaps, mounting debt covenant pressure, and unexpected executive management resignations across listed holdings.
Source
alixpartners.com