Members of Sheppard Mullin’s Finance & Bankruptcy team recently co-authored an article entitled “When the Other Shoe Drops: Drivers of the Next Restructuring Cycle” with experts from leading restructuring advisory firm M3 Partners for the January 2022 issue of the American Bankruptcy Institute Journal. The article discusses the confluence of factors that Sheppard Mullin and M3 believe will contribute to an uptick in restructuring activity in the future, including the eventual tightening of credit markets and a variety of pre-pandemic and post-pandemic headwinds.
“Despite the broad V-shaped economic recovery that has taken place since mid-2020, the mixture of government stimulus and an uncertain future has created an environment that could give rise to significant restructuring activity, as emerging risks materialize and borrowers no longer find themselves able to refinance their indebtedness on favorable terms,” the authors write.