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.
Artificial intelligence platform Character Technologies Inc. commenced a Chapter 11 case Oct. 12 in Delaware with an offer from Disney to acquire the company's assets, including its Character.AI service, for $20 million, and a team of attorneys from Wilson Sonsini Goodrich & Rosati PC is guiding the debtor through the process.
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.