United States: Financial Restructuring

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism—a sale under Section 363 of the United States Bankruptcy Code. Understanding how Section 363 sales work can help business owners, lenders, investors, and prospective purchasers identify opportunities and avoid costly surprises in bankruptcy asset transactions.

Cole Schotz attorney Michael Sirota received an urgent early-morning call to file nearly 200 bankruptcy cases within 24 hours after the Shabseles brothers' real estate empire and summer camp network unexpectedly collapsed. With 20,000 children about to board buses for summer camp, the legal team faced the challenge of restructuring a complex web of entities while ensuring the camps could open on schedule.

On July 23, 2026, the Antitrust Division of the U.S. Department of Justice (DOJ) announced that it was resuming “targeted” Second Request investigations and published a new Model Timing Agreement (MTA).

The U.S. Bankruptcy Court for the Southern District of New York examined whether an involuntary Chapter 11 petition filed by noteholders against a Chinese property development holding company should be dismissed in favor of a parallel Cayman Islands restructuring proceeding.

Teneo Senior Managing Director Bernardo Silva joins Katten's Paul Musser to explore the unprecedented distress gripping the wine and spirits industry following a pandemic-induced boom.

Teneo Senior Managing Director Bernardo Silva discusses the unprecedented distress reshaping the wine and spirits industry, from pandemic-fueled overinvestment to structural consumer shifts including the "sober-curious" generation, cannabis legalization, and GLP-1 adoption. He shares insights on navigating inventory gluts, weak balance sheets, and the unique challenges of an industry where products age for years before reaching market.

Delaware has become the sixth state to adopt the Uniform Assignment for Benefit of Creditors Act, creating a more streamlined framework for distressed companies. This new legislation offers an alternative to Chapter 11 bankruptcy for Delaware-organized companies lacking liquidity, featuring assignee independence, structured claims administration, and Court of Chancery oversight. The Act's implications are significant given that over 60% of publicly traded U.S. companies are organized in Delaware.

Subchapter V was designed to help small-business debtors reorganize in Chapter 11 with less cost and on a faster timetable than a traditional Chapter 11.

The U.S. distressed commercial real estate market faces mounting pressure from high interest rates, overleveraging, and an approaching wave of loan maturities. Real estate experts explore why conditions in multifamily, office, and hotel assets may be worse than widely reported, and outline practical strategies for borrowers to protect their interests in an increasingly challenging refinancing environment.