To file or not to file for bankruptcy? Its a question that no business leader wants to consider, but sometimes its necessary. Indeed, given the challenges and uncertainties of the last 16 months, it has been a top-of-mind issue for many companies across different economic sectors.
In 2020, according to data from Epiq AACER, Chapter 11 corporate bankruptcies increased 29% over 2019. Filings are down a bit in 2021, as a resurgent economy, fiscal stimulus, low interest rates, and ample private capital have helped companies remain solvent.
Nonetheless, even when there are macroeconomic tailwinds, there are still discrete forces such as unmanageable debt, supply chain disruptions, or bad litigation outcomes that can push individual compan…
Read the full article at: https://www.cfo.com/bankruptcy/2021/07/out-of-court-restructuring-as-a-viable-alternative-to-chapter-11/