Spencer Fane attorney Jim Lodoen recently spoke with a reporter at Banking Dive about the trend of increased bankruptcy filings and the tough decisions ahead for lenders dealing with distressed borrowers.
Titled “Lenders face tough decisions as commercial bankruptcy filings mount,” the article details the year-over-year increase in Chapter 11 filings as the effects of the COVID-19 pandemic become more concrete. Jim emphasized the need for banks to assess their borrowers and make informed decisions on whether to liquidate collateral or work with a distressed borrower.
“Many of us in this industry are expecting that next year, we will see more distress. It’s becoming easier to identify the winners and the losers in this new marketplace environment, and I believe we’re going to see lender patience wane,” Jim said in the article.
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