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Beware—Commercial Bankruptcies Are Accelerating In our current economic climate, watching out for customer red flags is essential. That’s because commercial bankruptcies have been rising and are expected to continue rising. Trustee Program estimates that bankruptcy filings will double over the next three years.
Another thing trade creditors can study is companies that have defaulted or filed for bankruptcy. We’re going to look at the situations involving four well known companies that ended up in bankruptcy so we can better understand the circumstances that signal a commercial bankruptcy may be on the horizon. J.Crew Group, Inc.
Photo by Melinda Gimpel on Unsplash ) The American Bankruptcy Institute recently reported that, “The 6,067 total commercial chapter11bankruptcies filed during the first nine months of 2024 represented a 36 percent increase over the 4,561 filed during the same period in 2023.” Trustee Program.
The Middle District of Florida heard the company, Red Lobster Management LLC’s Chapter11 plea , signaling a worrying patch for such an established institution. Red Lobster files for bankruptcy Red Lobster has taken a significant step, opting to sell the company’s assets and drastically reduce the number of its locations.
Commercial bankruptcies have been surging since mid-2022. Chapter11 filings, used by businesses hoping to reorganize, have increased by 34 percent in the first six months of 2024 compared to last year. Department of Justice expects a sharp increase in bankruptcies with the U.S.
The post CASE SUMMARY: Rite Aid Aims to ‘Significantly’ Right-Size Balance Sheet, Rationalize Lease Portfolio Through Dual-Track Comprehensive Restructuring Under RSA With Second Lien Noteholders; March 2024 Emergence Targeted appeared first on Reorg.
LMEs, also known as distressed exchanges, involve renegotiating debt terms outside of bankruptcy, often allowing companies to stabilize their balance sheets inorganically and avoid a Chapter11 filing at an inopportune time, such as when earnings are at a cyclical low. Data has been updated to reflect confidential issuers.
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