Warner Norcross + Judd LLP Partner Dennis W. Loughlin discussed the slow pace of Michigan bankruptcy filings in an article title “Bankruptcy filings scarce in pandemic” in this week's Crain's Detroit Business.
According to Crain's, Michigan companies avoided the national toll through a perfect confluence of events: governmental support through relief programs such as the federal Paycheck Protection Program; cooperative banks; an automotive sector that recovered quickly from the early shutdowns during the pandemic; and a years-long trend of bankruptcy forum shopping among large companies.
"It's been almost like the perfect storm of good things happening," said Loughlin. "Each one of those components provided options and alternatives for distressed or potentially distressed companies to weather the storm and make it through to the other side."
Loughlin, who has extensive experience counseling secured and unsecured creditors in all phases of bankruptcy proceedings, also commented that banks have been especially accommodating during the pandemic, likely keeping hundreds of companies out of court.
"There's been an almost unprecedented attitude of 'we're all in this together' from the banks," said Loughlin. "So that payment relief and extensions would have provided some breathing room for companies that otherwise would have needed bankruptcy relief."
Crain’s Detroit Business subscribers can read the full story HERE.
