James Peck spoke to Law360 about the decrease in corporate restructuring filings in 2021 following a surge during the first year of the COVID-19 pandemic, and whether this slowdown will last, as favorable financial conditions wane and uncertainty increases over the spread of a coronavirus variant.
According to James, interest rates will likely begin to rise as the economy rebounds from the pandemic, making borrowing more expensive for companies already facing financial problems.
“There are pressures that can’t be disregarded indefinitely that will lead to filings either later this year or in 2022,” James said. “It’s largely the run-out of forbearance agreements in place currently and the wall of debt that needs to be refinanced over the next year or two.”
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