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October Bankruptcy filings jump 83% YoY, but maintains similar activity level as September

Debtwire’s Monthly Restructuring Insights report provides a high-level overview of bankruptcy filings in October 2023 and tracks filing strategies, venue choices, frequent advisor, debtor-in-possession (DIP) financing packages and other data points.

The 22 new bankruptcy filings in October is a 83% increase in activity YOY, but is substantially similar to activity in September, which had 23 new cases. The filings from October included the following notable cases:
Rite Aid Corp, Air Methods Corp, and Akumin Inc.

Cases LTM: Sector

Source: Debtwire’s Restructuring Database 

Filing strategy: Of the 22 cases filed in October, seven were free fall bankruptcies (32%) while six were filed using pre-filing sale process plans (27%).  

Venue: Delaware was the most active court with seven filings (32% of total filings), while the Southern District of Texas was second with five filings (23%).  

Sectors: Healthcare continues to be the most active sector among the new bankruptcy filings with five cases this month, followed by retail with three. 

DIPs: There were 18 Chapter 11 filings in October of which 11 (61%) used DIP financing facilities to fund their bankruptcies. Rite Aid’s USD 3.45bn DIP is one of the largest financing packages offered over the last few years. 

Advisors: Paul Weiss was the most active legal advisor with five mandates, followed by Lowenstein Sandler which had three mandates. On the financial advisor/ investment banker side, AlixPartners and BRG were the most active with three mandates each. 

Click here to explore the entire Restructuring Database (access required). 

by Jayjeet Sharma