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Bloomberg News: US Bankruptcy Tracker - Battered Firms Hasten to Cut CostsFebruary 02, 2021
O’Melveny partner Daniel Shamah is quoted in this Bloomberg News article, which explained why more US companies are filing for bankruptcy with restructuring plans already in place, a trend that is likely to continue through 2021 as companies trim costs.
There may be more pre-packaged filings this year than in 2020, when pandemic-driven uncertainty made it difficult to build creditor consensus prior to a filing, Shamah told the publication. “Having a Chapter 11 that is controlled is always better,” he stated.
Observers noted that businesses are spending more time negotiating and detailing how they plan to exit from Chapter 11 bankruptcy cases before filing for bankruptcy protection, according to the article. By reorganizing prior to court, companies hope to save time and money.
Bloomberg News subscribers can read the full article here.