Davis Polk partner and Restructuring practice co-head Damian Schaible discussed the market conditions that are driving an increase in out-of-court restructuring deals with Bloomberg.

“There is a bit of a K-shaped market for companies facing 2028/2029 maturities,” Damian explained. “Companies facing near-term maturities seem to be divided into easy refinancing stories and tougher ones.”

Damian also noted that while the so-called maturity wall is more than a year away, sponsors and companies may believe that now is the right time to engage with their creditors. “As maturity gets closer, the value of the loose documents diminishes,” he said. “If you are likely going to need to talk to your lenders to seek maturity extension, there is an argument to do it sooner rather than later.”

“Out-of-Court Creditor Deals Are Coming to the K-Shaped Debt Market,” Bloomberg (April 25, 2026) (subscription required)

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