ARTICLE
26 April 2024

Help, The Lenders Are Fighting Again: Creditor Violence Driving Demand In Bankruptcy, Litigation Practices

Corporate restructurings are on the rise in 2024, as a slow burn of delayed insolvency from the COVID-19 pandemic works its way into bankruptcy court.
United States Insolvency/Bankruptcy/Re-Structuring
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Corporate restructurings are on the rise in 2024, as a slow burn of delayed insolvency from the COVID-19 pandemic works its way into bankruptcy court. According to Epiq Global, commercial bankruptcy filings were up 22% in Q1 compared to the first quarter of 2023.

But another factor is also driving more work toward bankruptcy practices and commercial litigators: creditor violence.

Tim Carter is quoted in Law.com. Read the full article here.

You may also be interested in Lenders Seek to Avoid Creditor Violence – an article written by Tim Carter, Pam MacKenzie, and Jim Wallack for The Wall Street Journal.

"Cooperation agreements that are executed among lenders when a borrower faces financial distress typically now say that no one can talk to the borrower except through the group, so there's no opportunity to do different deals," said Carter. "The current versions of loan and workout documents being drafted attempt to account for these issues."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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