Media Coverage
Source: Daily Journal’s Capital & Counsel Newsletter
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
08.18.26
In the first half of 2026, corporate bankruptcies rose 12.2 percent—the highest level in more than 13 years—driven largely by small and midsize businesses, with overall commercial bankruptcies up 28 percent and Subchapter V filings surging 50 percent. Recent reporting attributes the increase to mounting pressure from higher borrowing costs and weakening demand, fueling concerns that broader financial distress could follow.
In a recent interview, Andrew Troop, the leader of Pillsbury’s Insolvency & Restructuring practice, noted that borrowers and lenders are increasingly turning to out-of-court strategies known as “liability management exercises” to restructure debt.
“Creditors are trying to figure out a way to accomplish the same results without running afoul of what courts have ruled regarding some of the existing transactions,” he said, he said, adding that they are in some cases trying to keep companies going for a period of time, while enhancing their own position within the capital structure.