WILMINGTON, DE — Corporate restructuring professionals increasingly expect artificial intelligence to improve efficiency, but delays in governance, regulatory compliance and cross-border administration remain significant obstacles to executing complex financial restructurings, according to a global survey released by Wilmington-based CSC.
The business administration and compliance services provider surveyed 210 professionals across banking, financial services, restructuring consulting, legal services and private credit. The research found that 82% expect AI to significantly improve restructuring efficiency and decision-making.
The findings point to a disconnect between technological expectations and the operational arrangements needed to implement restructuring agreements, particularly when transactions involve multiple entities or jurisdictions.
Respondents identified information gathering, know-your-customer compliance mapping, communications, administration and monitoring as areas where AI could reduce processing time and administrative work.
Yet the most frequently cited execution problems involve organizational responsibilities and the management of legal entities.
Forty-three percent of respondents identified unclear roles and responsibilities as a leading challenge, while an equal proportion cited difficulties administering special purpose vehicles, or SPVs, and other restructuring entities across jurisdictions.
Cross-border coordination and time-zone differences were cited by 42%, followed by delays in onboarding and appointments, including anti-money laundering and know-your-customer procedures, at 39%.
The survey also identified a gap between when restructuring professionals believe administrative support is needed and when those services are actually introduced.
Eighty percent considered governance services valuable during the early stages of a restructuring, but only 24% reported that those services were first engaged at that point.
A similar disparity emerged for SPV and entity administration, with 67% identifying early involvement as valuable compared with 25% reporting early engagement.
For corporate trust and agency services, 56% considered early involvement valuable, while just 15% said those services were brought into the process at that stage.
The differences suggest that operational planning often trails commercial negotiations, potentially creating implementation pressures once restructuring terms are agreed upon.
“Commercial decisions can take months, but once parties know what they want to do, they want to move very fast,” said Jordina Walker, CSC’s head of restructuring and special situations for Europe, the Middle East and Africa.
“At that point, the question becomes less about whether a restructuring route is viable and more about how quickly the necessary entities, appointments, documentation, and support can be put in place.”
The research also found substantial demand for providers capable of handling multiple administrative functions.
Eighty-three percent of respondents rated access to governance and director services, SPV administration, and trust and agency capabilities through a single provider as important.
Another 77% emphasized the importance of demonstrated experience with restructuring and distressed financial situations.
CSC’s Sean Foronjy, director of corporate trust and agency, said AI could help streamline administrative processes but would not eliminate the need for specialized expertise.
“The real opportunity is in combining the right tools with people who understand the complexities of restructuring and know how to apply them effectively,” Foronjy said.
The findings are detailed in CSC’s report, The Restructuring Execution Gap—Why Operational Readiness Determines Outcomes.
The survey measures professional expectations and reported operational challenges rather than independently establishing the performance improvements AI will deliver.
For restructuring advisers, lenders and other participants in distressed transactions, the findings underscore the importance of coordinating governance, entity administration and compliance requirements before commercial agreements reach the implementation stage.
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