Managing partner Andrew Glenn was recently quoted in S&P Capital IQ Pro on the state of U.S. corporate bankruptcy activity and the macroeconomic forces that may shape the months ahead.
April marked the lowest monthly bankruptcy total since mid-2024, with large corporate filings falling to 50 from 70 in March. However, the trajectory of bankruptcy cases could rise in the coming months due to inflationary pressures, elevated fuel prices, and other macroeconomic uncertainties.
“We haven’t seen a barrage of major Chapter 11 bankruptcy cases filed, and I think right now we are in this calm before the storm period,” Andrew said. “From my assessment, the macroeconomic factors have still not resulted in the next wave of big filings.” He said significantly more in-court restructuring activity could be expected in the second half of the year.
Andrew pointed to private credit market stress as a particularly consequential factor.
“Once there are withdrawals from private credit funds and market liquidity dries up, you’re going to see more in-court restructuring activity,” Andrew said. “What you are going to see as time goes on is less liquidity, more demand for financial and operational restructurings and more in-court activity as a result.”
