In a recent Law360 article, Thompson Coburn Financial Restructuring & Bankruptcy partner Mark Indelicato weighed in on the growing wave of mega corporate bankruptcies. Companies cited high inflation, elevated interest rates, reduced consumer demand and competition as the key drivers of their bankruptcy filings.
Recent shifts in public policy—including uncertainty around trade, tariffs, and energy regulations—have added further pressure.
“Political policies, tariffs and others have dealt the final blow to some of these companies requiring them to file for bankruptcy,” Mark said.
He highlighted the rise of liability management transactions (LMTs), which allow companies to restructure or extend debt outside of court to avoid bankruptcy. “Parties are using the tools that are best available to them to protect themselves, and they think utilization of the LMTs is a way to do that. I think that is going to grow and continue to develop,” he said.
Regarding macroeconomic pressures, “I think we’ll continue to see more large companies file for bankruptcy, particularly if the economy doesn’t swing back in the right direction,” he added.
Read the full article here.
