Reorg: 2023 Middle-Market Outlook: The Rising Role of Sponsors in Restructurings, Interest Rates and Potential for ‘Lender-on-Lender Violence’

Chapter 11 filings are on the rise after the cash giveaway of the pandemic years, with bankruptcies rising 18% in the second half of 2022 from the first half, according to Reorg’s First Day. So far in 2023, 40 companies have filed for protection, a pace not seen since 2020, prior to the Covid-19 shutdown; of these, eight were middle market, with funded debt of less than $500 million, according to the First Day database.