United States: Insolvency/Bankruptcy/Re-Structuring

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.

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.

On May 8, 2026, Judge Elizabeth D. Katz of the U.S. Bankruptcy Court for the District of Massachusetts (the Court) issued an opinion denying Chapter 15 recognition of a Russian involuntary bankruptcy proceeding filed against Alexander Zheleznyak.

Federal prosecutors and the SEC are intensifying scrutiny of the $3 trillion private credit market following the September 2025 bankruptcies of Tricolor Holdings and First Brands Group...