Bankruptcy, Reorganization + Creditors' Rights

Pryor Cashman Partner Seth H. Lieberman, Chair of the Bankruptcy, Reorganization + Creditors’ Rights Group and Co-Chair of the Corporate Trust Practice, was quoted in a Law360 Bankruptcy Authority article discussing the landscape of corporate bankruptcies in 2025, which has been marked by high-profile cases, fraud allegations, and complex financial restructurings.

In the article, "Fraud Claims, Policy Shifts Drove Biggest 2025 Bankruptcies," Seth provides insights into several of these cases, shedding light on the factors driving the rise in corporate failures and the unique challenges faced by both businesses and the legal community. Specifically regarding fraud allegations, such as those in the First Brands Chapter 11 filing, Seth shared that “the fallout could be ‘greater than First Brands’... as it exposes that ‘there's been a lot of risky lending going on for some time, from all shapes and sizes.’”

Regarding struggles faced by brick-and-mortar retail stores, including issues with inflation, interest rates, and the shift to online shopping, Seth highlighted the challenges these companies face, particularly in the realm of "retail Chapter 11s," which he described as "hard." “The effect that the world of Amazon and the like has had in the last 15, 20 years just makes it a really difficult environment,” Seth noted, reflecting on how even iconic brands are struggling to find their footing in an increasingly digital marketplace.

Seth pointed out the unprecedented nature of Spirit Airlines' "Chapter 22" filing in 2025, remarking, "I would struggle to tell you a 22 of this magnitude that was filed so close to the exit of the prior 11." The case has presented complexities around aircraft leasing, contracts, and labor issues, which Seth noted could influence how the bankruptcy is ultimately resolved. "Spirit II seems to be doing that, although it's still ongoing, and the jury is still out as to how it will end," Seth said.

Seth’s analysis of Genesis Healthcare’s contentious bankruptcy case in 2025 highlights the challenges of private equity in the healthcare space. "I don't know how the end of that book will be written," he said, acknowledging the uncertainty surrounding the case, which involves accusations of insider manipulation and asset stripping.

In the article, Seth points out that the landscape of corporate bankruptcies is constantly evolving, and the full impact of these cases will only become clearer in the months and years to come.

Read the full article using the link below (subscription may be required).

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[Law360 Bankruptcy Authority] Fraud Claims, Policy Shifts Drove Biggest 2025 Bankruptcies