Davis Polk partner Brian Resnick was quoted in the Daily Business Review on bankruptcy trends in 2022. Brian pointed to two trends that make this current period of restructuring unique: 1) increased valuations of companies utilizing chapter 11, and 2) the “Texas Two-Step,” which uses Texas law to deflect blame and financial punishment to a separate company. Brian notes, “2022 may be the year in which we will see whether these efforts to cabin mass tort liabilities through a divisive merger and bankruptcy will be successful, or if the courts or legislatures will put an end to it.”

Experts Predict Brisk Dealmaking in 2021 Signals Uptick in Bankruptcies Next Year,” Daily Business Review (December 30, 2021) (subscription needed)