Financial distress across the U.S. economy showed signs of easing in the third quarter of 2026, but the improvement was far from uniform. Real estate distress continued to deepen, particularly among smaller property owners, while healthcare distress remained elevated despite a sharp quarterly decline, according to a new report from law firm Polsinelli.
The proposed buyer of a building in New York City's Flatiron District filed for bankruptcy relief after the sale fell through. Affiliates of Terra Carta Partners joined its Chapter 11 case, after their parent company was placed into bankruptcy involuntarily earlier this year. And a Buffalo, New York, steel company sought bankruptcy relief after 78 years in business.
The U.S. Trustee's Office has told a Texas bankruptcy court it should not add another case to the watchdog's nearly three-year-old fee clawback litigation against Jackson Walker LLP, saying prepetition bankruptcy work by a former partner whose undisclosed romance with a bankruptcy judge kicked off an ethics scandal was "troubling" but distinct from 33 other cases.
Previous
Next
Financial distress across the U.S. economy showed signs of easing in the third quarter of 2026, but the improvement was far from uniform. Real estate distress continued to deepen, particularly among smaller property owners, while healthcare distress remained elevated despite a sharp quarterly decline, according to a new report from law firm Polsinelli.
The proposed buyer of a building in New York City's Flatiron District filed for bankruptcy relief after the sale fell through. Affiliates of Terra Carta Partners joined its Chapter 11 case, after their parent company was placed into bankruptcy involuntarily earlier this year. And a Buffalo, New York, steel company sought bankruptcy relief after 78 years in business.
The U.S. Trustee's Office has told a Texas bankruptcy court it should not add another case to the watchdog's nearly three-year-old fee clawback litigation against Jackson Walker LLP, saying prepetition bankruptcy work by a former partner whose undisclosed romance with a bankruptcy judge kicked off an ethics scandal was "troubling" but distinct from 33 other cases.
-
October 22, 2026
Law firm Jackson Walker said Wednesday that it should not be sanctioned for failing to bring to a Texas federal judge's attention additional cases involving an undisclosed romantic relationship between a bankruptcy judge and one of its attorneys because the U.S. Trustee already investigated those cases and didn't take action.
-
October 22, 2026
Philadelphia-based Weir LLP has shaken up its leadership team by naming a partner who has practiced at the firm for more than 25 years as its new managing partner.
-
October 22, 2026
Counsel for alcohol distributor Republic National told a Texas bankruptcy judge Thursday it has resolved creditor objections to its Chapter 11 liquidation plan and will be seeking the court's approval for the proposal next week.
-
October 21, 2026
A Chapter 11 trustee urged the U.S. Supreme Court on Wednesday to reject a bid by Chinese exile Miles Guo's daughter to undo rulings placing $24 million in yacht sale proceeds plus a $37 million escrow into the bankruptcy estate, disputing allegations that a circuit split warrants the justices' attention.
-
October 21, 2026
A Third Circuit panel appeared skeptical during more than two hours of oral arguments on Wednesday that an order greenlighting the nearly $6 billion sale of Citgo to satisfy billions of dollars of Venezuelan debt should be overturned because of the appearance of bias.
-
October 21, 2026
Petitioners who say they hold $272 million of debt have filed an involuntary Chapter 11 petition against Braskem America Finance Co., an indirect subsidiary of Brazilian Chapter 15 debtor Braskem SA, after a Brazilian court decided to sever the Chapter 15 debtors from their Brazilian bankruptcy proceeding.
-
October 21, 2026
First Brands Group's bankruptcy lenders Wednesday urged a Texas bankruptcy judge to throw out a bid by Evolution Credit Partners to secure $21.2 million in sale proceeds that the inventory finance firm alleges constitutes its collateral.
-
October 21, 2026
The federal government urged a Delaware bankruptcy court to dismiss an adversary action from Noble Supply & Logistics seeking roughly $19 million from the Defense Logistics Agency for goods and services the company said were delivered, arguing the court lacks jurisdiction.
-
October 21, 2026
A New York bankruptcy judge Wednesday granted Chinese real estate services group E-House's Chapter 15 petition, recognizing a Cayman Island restructuring scheme giving creditors equity in the group.
-
October 21, 2026
The U.S. Trustee's Office has standing to pursue millions of dollars in fees paid to Jackson Walker LLP in cases assigned to a judge who was in an undisclosed romantic relationship with one of the firm's ex-partners, a Texas bankruptcy court has concluded.
-
October 21, 2026
Blank Rome LLP has brought on a four-attorney, New York-based commodities team from Hogan Lovells Cadwalader that advises clients in the financial services and energy industries.
-
October 21, 2026
A Delaware bankruptcy judge Wednesday gave the OK to artificial intelligence-powered pharmaceutical group BioXcel to proceed with a $125 million sale to Israeli drugmaker Teva Pharmaceuticals, and allowed the debtor to send its Chapter 11 plan for a creditor vote.
-
October 21, 2026
Visual content company Getty Images Holdings Inc. filed for Chapter 11 protection Wednesday in Delaware bankruptcy court with more than $1 billion of debt and a plan in hand that will provide $533 million in new equity investments into the business and has the support of a majority of its creditors.
-
October 20, 2026
Former minority shareholders in Argentine oil and gas company YPF have been barred from retaining discovery obtained in a New York court case as they pursue an investor-state claim against Argentina over a since-overturned $16 billion judgment, according to a Monday court order.
-
October 20, 2026
The Roman Catholic Archdiocese of New Orleans and the trustee of its $230 million childhood sexual abuse settlement fund on Tuesday told a Louisiana bankruptcy judge they had reached an agreement to share the names of the members of the archdiocese's abuse review board.
-
October 20, 2026
Pharmacy service provider Omnicare has asked a Texas bankruptcy judge for permission to make a third set of tweaks to its $110 million debtor-in-possession financing agreement, including when the loan comes due, saying the debtor won't be able to consummate its sale to spin off from parent company CVS before the current maturity date.
-
October 20, 2026
Investment platform Linqto asked a Texas bankruptcy judge to allow modifications to its Chapter 11 plan, substituting one entity as liquidating trustee for another.
-
October 20, 2026
A Texas bankruptcy judge on Tuesday allowed telecommunications company Hughes Satellite Systems Corp. to retain its exclusive right to file a Chapter 11 plan until Dec. 1, rejecting a noteholder challenge to the debtor's control of its case while cautioning that the debtor could soon run out of money.
-
October 20, 2026
A Texas bankruptcy judge Tuesday said he would not clarify his earlier ruling on First Brands' insurance policies during a pending appeal, even as ex-executives of the former car parts giant face an approaching criminal trial and growing legal bills.
-
October 19, 2026
A trading firm is urging the U.S. Supreme Court to finally resolve whether an arbitrator or a court should decide the proper venue for a dispute involving a nonsignatory to an arbitration agreement, as it fights a Seventh Circuit opinion keeping a putative securities class action in court.
-
October 19, 2026
The U.S. Trustee's Office is urging a Delaware bankruptcy judge to reject AI-bolstered pharmaceutical group BioXcel's Chapter 11 plan disclosure statement ahead of a hearing Wednesday, arguing the plan contains nonconsensual third-party releases of claims that might be the only way unsecured creditors get paid back.
-
October 19, 2026
California and 23andMe's corporate successor have reached a $6 million settlement that, if approved, would resolve the state's allegations that the genetic testing company failed to protect customers' sensitive information in a 2023 data breach, as well as the state's objection to 23andMe's sale of genetic data during bankruptcy proceedings.
-
October 19, 2026
Unsecured creditors of Republic National Distributing asked a Texas bankruptcy judge to reject the alcohol distributor's proposed Chapter 11 plan, saying it is seeking to settle more than $1 billion in claims against its equity owners for less than a penny on the dollar.
-
October 19, 2026
A New York bankruptcy judge Monday gave final approval for Latvian air carrier airBaltic to draw on $404 million in Chapter 11 financing, overriding objections from bondholders.
-
October 19, 2026
Creditors of Hughes Satellite Systems are seeking the right to propose their own Chapter 11 plan. LIV Golf secured approval for $53.6 million in bankruptcy financing and a $300 million restructuring agreement. Genesis Healthcare and almond grower Trinitas Advantaged Agriculture Partners won approvals for their Chapter 11 liquidation plans.