From Yahoo Finance: 2025-05-06 14:36:00

Debt restructuring by financially stressed U.S. companies surged nearly 60% in April, reaching $3.5 billion compared to $2.2 billion in March and $1.6 billion in February. The volume of bonds trading with yields of over 1,000 basis points above U.S. Treasuries rose by $18.4 billion to $94.6 billion, a 10-month high.

Companies are turning to distressed exchanges or liability management exercises to renegotiate debt instead of filing for bankruptcy. The increase in these operations reflects deteriorating fundamentals and the need for alternatives to bankruptcy.

Experts caution that optimism for a turnaround after turbulence may be misplaced. With trade wars and regional instability causing economic chaos, the pace of distressed exchanges is expected to remain brisk. These operations typically provide companies one to two years to address underlying issues.



Read more at Yahoo Finance: Stressed US companies restructured more debt in April