Large corporate bankruptcies in the Southern District of Texas have seen a notable decline, dropping by 65% in the first half of 2024 as compared to the same period in 2023. This substantial decrease follows the resignation of a prominent bankruptcy judge, manifesting significant changes in bankruptcy filings within the jurisdiction (more info).
Despite the reduction, Houston remains a key venue for major restructurings, holding its position as the second most preferred location for such cases in the past 12 months, trailing only Delaware. This insight is according to a new report from financial and economic consulting firm Cornerstone Research, released on Wednesday (view report).
The resignation of the judge, who faced ethical scrutiny, has evidently impacted the bankruptcy landscape in Houston, prompting a move in filings to other districts. New developments see New Jersey surpassing New York in corporate bankruptcy cases for the first time, illustrating a shift in preferred bankruptcy venues.