Worldwide: Financial Restructuring

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).

Private credit markets are showing signs of stress, with enterprise software borrowers particularly vulnerable as AI disruption threatens their business models. Four critical warning signals—deteriorating credit health, rising PIK interest, mid-market concentration of defaults, and strategic misalignment with AI—suggest lenders need to shift from passive monitoring to active portfolio management before the 2028 debt maturity wall arrives.

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.

The Third Circuit Court of Appeals has issued a pivotal ruling in Chester, Pennsylvania's chapter 9 bankruptcy case that examines when municipal revenue bonds maintain their secured status after a city files for bankruptcy protection. The decision analyzes three critical exceptions under Section 552(a) of the Bankruptcy Code that could preserve bondholders' liens on post-bankruptcy revenues, with implications for how municipal financing structures must be crafted to withstand bankruptcy proceedings.

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.

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.