The Wall Street Journal reports that corporate chapter 11 filings are increasing, reflecting market concern over market volatility, interest rate hikes, and a potential economic slowdown. Many expect default rates to increase this year, though perhaps by not as much as one would expect given the current economic headwinds, based on many companies having taken advantage of the relatively lax lending terms over the past year or two to extend their debt maturities past 2024. [WSJ; July 1, 2022]

According to Markets Insider, the crypto industry is feeling the ripple effect from the sell-off earlier this year. [Markets Insider; July 5, 2022]. Crypto lenders are pausing withdrawals, trading, and deposits due to liquidity concerns. Relatedly, Business Insider reports on the recent chapter 11 filing by top cryptocurrency broker Voyager Digital in the Southern District of New York. [Business Insider; July 6, 2022]

Yahoo Finance reports that U.S. consumers' travel spending has slowed given the cost of summer travel, which is expected to be 25 to 50% more expensive than last year. Describing the high airfare and gas prices as a "no-win situation" for consumers, analysts predict a travel slowdown as the summer progresses despite consumers having spent much of the past two years cooped up during the pandemic. [Yahoo!; July 5, 2022]

Reuters reports that the Office of the U.S. Trustee filed an amicus brief with the Third Circuit Court of Appeals, urging the court to dismiss the New Jersey bankruptcy case filed by the Johnson & Johnson subsidiary, LTL Management. The U.S. Trustee described LTL's bankruptcy filing as "a weapon against tort claimants rather than a good-faith means of reorganization." [Reuters; July 1, 2022]

Visit us at

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.