Substantial Increase in Consumer and Commercial Bankruptcies Anticipated As Businesses Reopen – Eric Horn Explains Why

Eric Horn - AttorneyPartner Eric Horn shares his thoughts with The Street regarding the potential uptick in consumer and commercial bankruptcy filings once stores reopen. “Lenders have taken a step back for the time being and are essentially waiting for the stores to reopen,” he said. “At that juncture, they will be able to get a better sense as to the liquidation value of the collateral. The timing of store reopenings will certainly be a driver as to liquidation value. Inventory values will be critical to determining the bankruptcy timing and options.” We may also see lenders pushing companies into bankruptcy once restrictions are lifted and business resumes, contributing to the increase in Chapter 11 filings.

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