Escalating Debt Brawls Add to Headache for Distressed Companies
- Creditor brawls complicate filings: King & Spalding’s Warren
- Weekly Chapter 11 tally fell below average for virus era
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As the pace of large U.S. company bankruptcies stabilizes, escalating tensions between distressed companies, private equity owners and creditors signal more bruising Chapter 11 filings to come.
In the week ended Oct. 17, four businesses with more than $50 million in liabilities sought protection from creditors, including Mallinckrodt Plc, which was swamped by claims it profited from the U.S. opioid epidemic. The tally is in line with recent weeks, but below the weekly average of more than five since the pandemic started.