Perspectives - Kelvin Flynn & David Maund

Kelvin Flynn & David Maund, Managing director and director, respectively, Alvarez & Marsal Asia

The financial crisis of 1997 was a powerful and traumatic wake-up call for Asia and overseas investors in the region. The structural weaknesses underpinning the Asian economic miracle were abruptly and brutally exposed. Almost overnight, the flood of cheap capital chasing quick returns in the region reversed direction. Much of corporate Asia was left with over-leveraged balance sheets, substantial unhedged foreign currency debt positions, rapidly eroding revenues and profit margins, and