alixpartners in A Sentence

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    The Alixpartners report insists that the global OSV market is oversupplied by about 1,150 vessels.

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    Given these structural shifts in the oil industry, the Alixpartners report says that the global OSV market is currently oversupplied by about 1,150 vessels.

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    Alixpartners advises that companies need to be more ambitious about their cost-cutting plans, by streamlining both operating and selling, general and administrative expenses- some of which could be driven by employing state-of-the-art technology.

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    Alixpartners further warns that existing financial resources are likely not enough to sustain operators through the current environment, adding that 34 of 38 companies had Altman-Z scores of less than 1.8, indicating a high likelihood of bankruptcy in the next 12 months.

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    Elaborating on business combinations, Esben Christensen, Managing Director and co-leader of Alixpartners' shipping team, remarked,“Operators who leverage the current market situation to successfully trim their balance sheets are likely better positioned to withstand a prolonged downturn and ultimately potentially drive the consolidation so badly needed within the sector.”.

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