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June 22, 2026
Cadwalader partner Shai Schmidt was featured in The Wall Street Journal article, “Debt Deal Hangovers Derail Fast-Track Bankruptcies,” which examines how prior liability management transactions are complicating prepackaged chapter 11 cases and undermining their speed and efficiency.
The article highlights a growing trend of creditors challenging prepacks tied to earlier out-of-court restructurings that favored certain lender groups, leading to prolonged and contentious bankruptcy proceedings.
Shai noted that some of these cases are being labeled as prepacks despite lacking the broad creditor support traditionally required, observing, “We’re seeing some bankruptcy cases that are shoehorned into this category where they really are more of a ‘freefall’ case given the lack of broad creditor support.”
His comments underscore how unresolved disputes from earlier transactions are increasingly surfacing in chapter 11 and eroding the benefits of the prepack structure.
Read more (subscription required).
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