John W. Weiss Quoted in Law360 Regarding Interest Rate Cuts in 2025
John W. Weiss, chair of the Bankruptcy, Restructuring & Creditors’ Rights practice at Pashman Stein Walder Hayden P.C., was recently quoted in an article in Law360, “What Lower Rates? Ch. 11s Expected to Stay Sticky in 2025.” The article discusses why further interest rate cuts in 2025 may not be enough to save businesses facing unsustainable levels of debt and fundamental business challenges.
The article noted that analysts and restructuring lawyers expect filings and activity to remain robust among companies with $100 million or more of assets.
"Filings are going to remain fairly steady, notwithstanding the fact that rate cuts have occurred," said John Weiss.
When commercial bankruptcies are tallied across all applicable chapters, totals in June were the highest since September 2020, during the COVID-19 pandemic.
"There is still an extreme amount of leverage in the marketplace," Weiss said. "There still are fundamental problems with companies facing that weight of debt that they took on."
Retail and restaurant companies in particular will stay stressed, Weiss noted, after a year that saw major bankruptcies including that of TGI Fridays Inc. and World of Beer, both of which cited higher interest rates as one of several reasons for filing.
To read the full article from Law360, click here.
