ANALYSIS: Looking Back at Chapter 11 Megacase Activity in 2023

Chapter 11 bankruptcy practitioners were much busier in 2023 than in the recent past, although not quite at the levels seen after the 2008 global financial crisis. Debtors’ first day declarations, which describe the reasons for the bankruptcy filing, frequently cited high interest rates, inflation, and supply chain disruptions, in addition to other economic headwinds.

In September, it appeared that Chapter 11 megacases (defined as a nonindividual voluntary case with more than $50 million in assets) for the first two-thirds of the year were also experiencing a boom.

These cases were predominantly filed in the three megacase magnet jurisdictions—bankruptcy courts ...