The Effects of Chapter 11 Reorganization on Zombies

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The average time to recover is probably about two to three years after first becoming a zombie. More than 30 percent get purchased by other companies more than likely at low valuations because their performance is subpar. The more data-friendly and better chance of reorganization under the bankruptcy code, the lower the zombies.

In this week’s Primary View podcast, Dr. Edward Altman, the legendary bankruptcy expert, discusses the outlook for debt-saddled zombie companies with Reorg reporter Gaurav Sharma. The New York University professor, best known for the Z-Score formula, cautions that bankruptcy cases are likely to increase in 2024-25, even if the U.S. avoids a recession. If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial We're looking for feedback to improve the podcast experience! Please share your thoughts here: www.research.net/r/Reorg_podcast_survey For more information on our latest events and webinars: reorg.com/resources/events-and-webinars/ Sign up to our weekly newsletter Reorg on the Record: reorg.com/resources/reorg-on-the-record/ #leveragedfinance #highyield #restructuring #performingcredit #distresseddebt #debtrestructuring #leveragedloans