Out-of-Court Creditor Deals Are Coming to the K-Shaped Debt Market
Struggling companies with debt coming due could look to reshuffle early
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Welcome to The Brink. I’m Reshmi Basu, a reporter in New York, where I’ve been looking at why the number of out-of-court restructuring deals could be picking up again. We also have news on Spirit Airlines, Ingenico and Medallia. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net.
Economists have long described the US economy as K-shaped — the rich get richer and the poor get poorer. The same dynamic is now playing out among companies: stronger firms continue to grow and access capital, while the weaker ones fall further behind under the weight of debt and soft demand.