Bloomberg Law quoted Haynes and Boone, LLP Partner Eli Columbus in an article about his predictions of the business restructuring space in 2019. Notable trends include more business restructurings; shorter, faster reorganizations; and retail bankruptcies.
Here is an excerpt:
Expect a general pick-up in distressed and out-of-court restructurings and Chapter 11 filings in 2019, Eli O. Columbus, a partner with Haynes and Boone, LLP, Dallas, told Bloomberg Law.
One wildcard is cheap capital, which has led companies to take on a lot of debt. Some may need to file Chapter 11 to fix their balance sheets, Columbus said.
In a pre-pack case, debtors and key creditors usually enter a restructuring agreement even before a case is filed.
Pre-packs are most prevalent in the energy space and could become “a broader trend,” Columbus said.
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