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Endo, Altera and Lumileds heat up August Chapter 11 bankruptcy filings – August 2022 NorthAm Restructuring Insights

This edition examines newly filed US bankruptcy cases during August 2022. The bankruptcy market saw a slight increase in activity this month, with 14 new cases as compared to 10 cases filed in July. However, year over year, the number of cases in August 2022 was 30% less as compared to August 2021, which had 20 cases. Only one case commenced in August 2022 was a Chapter 15. The August cases included several significant filings including Endo Pharmaceuticals, Altera Infrastructure, and Lumileds Holdings, among others.

Looking at the new cases from a strategic side, 43% (6 out of 14) entered via free fall with pre-arranged plans and cases with a pre-filing sale process accounting for four cases each. Healthcare and technology were the most active sectors this month with three cases each. On the venue front, Delaware was the most active court with seven new cases.

In terms of case financings, only eight cases commenced in August are utilizing DIP financing to fund their bankruptcy cases. The largest DIP financing package totaled USD 275m, which was offered to Lumileds Holdings. On the financial advisor/investment banker side, Evercore was the most active with four mandates, followed by PJT Partners and Houlihan Lokey with three mandates each.