Bloomberg reports that the decrease in large U.S. bankruptcy filings may be attributable in part to the use of distressed exchanges in which creditors accept discounts on their debt in exchange for better claims on a borrower’s assets, a later maturity, or both.

The Wall Street Journal reports that Senator Elizabeth Warren plans to introduce legislation prohibiting owners of bankrupt businesses and individuals who have not filed bankruptcy from receiving non-consensual releases of claims that prevent governmental entities and private citizens from suing them. The legislation is prompted by the ongoing Purdue Pharma bankruptcy proceeding, in which the company has proposed a chapter 11 plan that, if approved, would shield the Sackler family from liability stemming from the opioid crisis. The legislation is broader than legislation proposed earlier this year, known as the “SACKLER Act” (discussed in a prior post here), which would only have prohibited non-consensual releases of claims of governmental authorities.

An article in Yahoo Finance describes trends that may drive distress in the commercial real estate market following the COVID-19 pandemic, including the rise of remote work and shorter lease terms as tenants gain negotiating leverage with office landlords.