Lawyers
Restructuring partner Jake Adlerstein spoke with CFO Brew about the recent increase in chapter 11 filings. In “Why are corporate bankruptcies on the rise?” published on November 12, Jake explains that these filings are likely a result of rising inflation and higher interest rates, among other causes.
Jake says that high interest rates are a “principal source of distress” and “even if they’re projected to come down in the future, remain problematic for companies that are needing to refinance or address liquidity problems today.”
Similarly, even if inflation falls, “a lot of the damage may have already been done to companies that were, for example, heavily focused on things like consumer spending as a source of their revenue.”
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