Joseph C. Barsalona II Quoted in Law360, “Mega-Bankruptcies Hit Post-COVID High, Report Says”
Joseph C. Barsalona II, partner in the firm’s Bankruptcy, Restructuring & Creditors’ Rights practice, was recently quoted in a Law360 article titled, “Mega-Bankruptcies Hit Post-COVID High, Report Says.” The article discusses how a new report from Cornerstone Research found that mega-bankruptcies reached their highest level since the pandemic, driven by high inflation, rising interest rates, and policy uncertainty.
"Due to COVID, interest rates dropped precipitously and billions of dollars of loans were provided to struggling companies between 2020 and 2021," said Barsalona. "The mega-cases you are seeing now are the companies that kicked the can down the road despite ongoing operational issues that are unable to refinance out of court."
"So long as there is an appetite by sponsors to 'amend and extend,' they will continue to go to the out-of-court financing well before they succumb to Chapter 11 and the astronomical professional fees that are associated with the process," explained Barsalona.
To read the full article in Law360, click here.