Steve Golden Quoted in the Daily Journal on Rise in U.S. Bankruptcy Filings and U.K. Restructuring Alternative

We are pleased to share that Steve Golden was quoted in the Daily Journal’s newsletter “Capital & Counsel.” The newsletter discussed the rise of corporate bankruptcies which rose another 12.2% during the first half of 2026, reaching their highest level since the aftermath of the Great Recession. Data compiled by the Administrative Office of the U.S. Courts reflects an increasingly gloomy picture for business with legal experts anticipating the worst may be yet to come for smaller companies. According to data compiled by Epiq, subchapter V filings under chapter 11 soared 50% during the first half of the year.

While Congress is considering a bill that would permanently raise the debt limit back to $7.5 million, several companies have adopted a novel method to address some of their debt by heading to the United Kingdom to avoid chapter 11 bankruptcy in the United States. Under provisions of the U.K.’s Companies Act known as Part 26 and Part 26A, U.S.-based companies can restructure a tranche of debt with the agreement of investors holding 75% of the debt, then seek approval from a U.S. bankruptcy judge under chapter 15. Companies create an entity in the United Kingdom that owes the debt but indemnify the U.S. company, releasing it from liability. Three companies, including energy infrastructure company New Fortress Energy Inc. and watch company Fossil Group Inc., have utilized the strategy. Steve offered his insight on the emerging trend stating, “you have done what you cannot do under U.S. law without filing a full-blown chapter 11 and have not subjected your entire business to a restructuring proceeding.” He adds, “English courts are very permissive when it comes to accepting jurisdiction and [restructuring] the debt of American-based companies.”

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