Partner and Restructuring practice co-head Damian Schaible and partner Brian Resnick were quoted in Petition regarding the biggest bankruptcy cases and themes of 2021.

Damian named Purdue Pharma as the bankruptcy case of the year, noting that it “is likely the most complex Chapter 11 case in United States History … The plan received virtually universal support, with more than 95% of creditors voting to accept.” Brian pointed to Hertz as the case of the year, noting, “Large, sophisticated distressed funds that had raised significant war chests found themselves in competitive auctions for chapter 11 debtors like Hertz, putting shareholders in the money by billions of dollars.”

Regarding major trends from the year, Damian pointed to an increase in junior capital, third-party releases and short prepacks, while Brian mentioned equity committees, the Texas Two-Step and remote hearings.

Asked specifically about what Congress might do about venue and third-party releases, Damian noted that both are important topics and that each works the way it should. According to Brian, “venue reform feels like political overkill for a problem that’s largely already been solved, if it ever existed,” and  “clear, uniform nationwide legislation describing strict requirements for nonconsensual non-debtor releases would be the best way forward.”

The Professionals Weigh In. Part I.,” Petition (December 15, 2021)