Corporate restructurings are increasingly prevalent in 2024, with a 22% rise in commercial bankruptcy filings in Q1 when compared to the same quarter of 2023, as reported by Epiq Global. This surge can be attributed to the aftereffects of the COVID-19 pandemic as delayed insolvencies continue to emerge in bankruptcy court.
Interestingly, this rising tide of corporate bankruptcies has been accompanied by an escalation in what is being termed as ‘creditor violence’. This involves lenders jostling for prime positions in order to ensure they are one of the first to get repaid as large corporations go under. This increased aggressiveness among creditors is not only driving a greater demand for bankruptcy practices, but is also contributing to a surge in work for commercial litigators.
As we continue to navigate the economic remnants of the global health crisis, it’s becoming clear that the effects are far-reaching, complex, and in some cases, contentious. For the full details on this phenomenon, read the original article on Law.com.