Five Thompson Coburn attorneys, including Mark Indelicato, Max Schlan, Jake Schwartz, Aleksandra Abramova, and Emaan Choudhry, contributed insights to the Mid-Year Review issue of Turnarounds & Workouts, highlighting several bankruptcy, restructuring, and distressed market trends that could shape the remainder of 2026.
The attorneys noted that restructuring and distressed transaction activity has remained active amid ongoing financial pressures across a range of industries. Rising bankruptcy filings, elevated default rates, and increased signs of stress among private credit borrowers continue to signal challenges for companies navigating today’s economic environment.
Mark and Aleksandra said that restructuring and distressed transaction activity has continued to gain momentum and also said that borrower distress remains elevated, particularly among companies relying on private credit, where signs of financial strain have increased significantly compared to the prior year. According to their analysis, the nature of distress has shifted as well, with many businesses facing challenges from debt burdens that accumulated over time.
Max identified luxury retail and other higher-end consumer sectors as areas to monitor, noting that continued consumer caution and tighter household spending could create headwinds for businesses that depend on discretionary purchases.
Jake discussed the growing interest in out-of-court solutions, as companies seek alternatives to formal bankruptcy proceedings that may better preserve enterprise value while reducing the costs, complexity, and time associated with a Chapter 11 filing.
Mark and Emaan said they expect restructuring outcomes to become increasingly execution-focused. They anticipate that some companies will move beyond liability management efforts into broader restructurings or distressed sale processes, while others may be able to stabilize through refinancing transactions.
Read the full issue here (registration required).
