North America: Insolvency/Bankruptcy/Re-Structuring

Chapter 7 bankruptcy trustees assume ERISA fiduciary responsibilities for company retirement plans, creating inherent tensions between their duties to plan participants and creditors. The Department of Labor's expanded Abandoned Plan Program now offers streamlined procedures for trustees to terminate 401(k) plans, but navigating the complex regulatory landscape requires careful coordination across multiple federal frameworks.

Lenczner Slaght, Canada's leading litigation firm, celebrates its seventh consecutive year as Litigation & Dispute Resolution Boutique Law Firm of the Year at the 2026 Canadian Law Awards. The firm welcomes 11 exceptional law students for summer positions and honors Sahar Talebi with the 2025 Dual JD Transnational Leader Award for her outstanding international contributions to the legal profession.

A U.S. Bankruptcy Court ruling examines whether a DIP financing roll-up violates prepetition credit agreement sharing provisions, with implications for how courts interpret payment obligations in liability management exercises. The decision addresses the tension between compensating DIP lenders for new money risk and protecting non-participating lenders' contractual rights to ratable treatment.

A U.S. Bankruptcy Court ruling examines whether a DIP financing roll-up violates prepetition credit agreement sharing provisions, with implications for how courts interpret payment obligations in liability management exercises. The decision addresses the tension between compensating DIP lenders for new money risk and protecting non-participating lenders' contractual rights to ratable treatment.

A notable shift is emerging in the treatment and pursuit of avoidance actions as bankruptcy filings continue to rise across certain sectors of the economy. Preference litigation, long a routine component of Chapter 11 proceedings, is becoming increasingly sophisticated as trustees, litigation trusts, and estate representatives adopt new tools and strategies to maximize recoveries.

Riveron's Q2 2026 Restructuring & Turnaround brief examines how companies across multiple industries are navigating elevated financial distress amid tighter credit conditions, rising debt maturities, and persistent operational pressures. The analysis explores sector-specific challenges from aerospace to retail, highlighting how management teams and lenders are addressing liquidity constraints and restructuring risks in an increasingly selective credit environment.