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ICLG.com: US Bankruptcies Headed to Hit 10-year HighAugust 26, 2020
O’Melveny Bankruptcy Litigation Group leader Peter Friedman is quoted in this ICLG.com article, which discussed the uptick in bankruptcy filings across the United States due to economic fallout from the coronavirus pandemic and potential litigation that could follow.
The publication noted that research from S&P Global has shown that US corporate bankruptcies are set to reach a 10-year high. The pandemic’s impact is projected to be particularly challenging for industries that rely on consumer spending.
Friedman told the publication that “as the pandemic continues to interrupt business as usual all over the country, it won’t be long before we begin to see a corresponding sharp rise in bankruptcy-related litigation.” He emphasized that litigation is likely to arise in valuation disputes, as creditors, equity holders, and courts grapple with the uncertainty of how long the pandemic will last, as well as in disputes linked to distressed retail tenants’ obligations to pay landlords.
ICLG.com subscribers can read the full article here.