(June 26, 2012, Weil News)
Weil Business Finance & Restructuring partners Martin Sosland and Sylvia Mayer recently spoke with the Dallas Business Journal
about the level of bankruptcy filings in Texas today and where the trend may be heading next.
Martin Sosland, based in the firm’s Dallas office, noted that, although Texas businesses were not immune from the downturn, the Lone Star State seems to have weathered the storm much better than in other parts of the country. "‘We've seen some fallout,’" Sosland said, but given the severity of the recession, Texas did not see an "‘unusually high number’" of chapter 11 bankruptcy filings.
Sylvia Mayer, who works out of Weil’s Houston office, added that the “amend and extend” approach adopted by banks with loans, whereby borrowers renegotiated deals with banks, with the expectation that the economy would improve, and were then able to continue meeting their obligations, also helped to avert bankruptcy filings in Texas and elsewhere. That trend, however, is coming to an end and some companies that have put off making tough decisions will now have to look at ways to run leaner and meaner, Mayer said, or may be forced to file for bankruptcy protection.
The article, “Bankruptcy case work in Texas is down,” was written by Tricia Lynn Silva and appeared in the Dallas Business Journal’s
June 23, 2012 edition.