Restructuring Pros Reflect on 2022

December 29, 2022 – Media Mention
Turnarounds & Workouts

Herrick Restructuring & Finance Litigation partner, Christopher Carty, reflected on the 2022 restructuring industry in his recent conversation with Turnarounds & Workouts

The article highlighted that inflation was among the top headlines in 2022. Chris explained, "The impact of inflation on restructurings will be felt through rising interest rates. Throughout 2022, the Fed repeatedly hiked interest rates to stem the rise of inflation. While commercial bankruptcy filings remain low, as they have since the federal government enacted pandemic-related measures to aid the economy, rising interest rates should lead to an uptick in filings. Once borrowers are unable to refinance their debt on economically advantageous terms, they may need to turn to chapter 11 to address looming maturities."

Chris continued, "Another major story is if, and when, the bankruptcy industry will return to in-person bankruptcy court appearances being the norm. While more and more courts have reopened their doors during 2022, most bankruptcy court hearings continue to be remote, and I’m not sure that should change. Over the past nearly-three years, the courts and practitioners have become quite skilled at conducting these hearings remotely, and remote hearings offer time efficiencies that can help keep costs down."

Please click here for a PDF copy of the article. A full-text copy of the December 2022 Turnarounds & Workouts newsletter is available here.