U.S. Special Situations Outlook: LMEs, Litigation and Bankruptcy

In this webinar, Mark Lightner, Winnie Cisar, Jory Eisenberg, Ian Feng, and Patrick Holohan provide a mid-year update on key trends shaping U.S. special situations, including liability management exercises (LMEs), distressed credit, and bankruptcy developments. The panel explores the macro backdrop driving elevated stress across leveraged finance markets, with higher borrowing costs, inflation pressures, and shifting monetary policy weighing on lower-rated issuers, while higher-quality segments remain more resilient. Sector themes across building products, software, healthcare, and telecom are discussed, alongside issuer-specific catalysts and the growing role of out-of-court restructurings as companies seek to extend runway through increasingly complex LME structures. The discussion also covers evolving documentation trends, including the rise of bespoke multi-step transactions, the limited adoption of new lender protections, and the continued importance of covenant flexibility. On the legal side, the panel reviews key litigation and Supreme Court cases impacting restructuring strategies, as well as developments in cooperation agreements and antitrust considerations. The webinar concludes with a detailed look at recent Chapter 11 activity, creditor dynamics, opt-in versus opt-out release debates, and ongoing disputes shaping the bankruptcy landscape in 2026.