- Corporate bankruptcies have hit rock bottom, with just 143 filings this year as of May.
- But inflation, rising rates, and the “crypto winter” are creating a financial strain.
- Here are 16 lawyers who may benefit as more companies negotiate with lenders and restructure their debt.
Lawyers who specialize in bankruptcies and debt restructurings have not seen many new cases in court for more than a year — but some are betting that’ll soon change.
Bankruptcy filings, which have been on a downward spiral since last year, continue to slump. As of May, there were just 143 corporate bankruptcy filings, putting bankruptcies on pace for a record low. In 2021, there were just 410 filings, down from 640 in 2020, according to an S&P Global Market Intelligence report in June.
But there are pockets of activity, and more than a dozen top restructuring practitioners told Insider they expected more out-of-court workouts and new Chapter 11-protection filings over the next year. Conference-room negotiations between companies and their lenders, which tend to precede filings, are picking up speed, the lawyers said.
Supply-chain problems, the uncertainty of the COVID-19 pandemic, inflation, and a decline in consumer confidence are likely to