Schnader’s Nick LePore Quoted in an Article on the Troubled Economy and Possible Increases in Bankruptcy FilingsOn September 26, 2008 by Schnader in News
Nicholas J. LePore, chair of Schnader’s Bankruptcy, Workout and Business Reorganization Practice Group, was quoted in the Philadelphia Business Journal article “Bankruptcy Blues,” which appeared in the September 26-October 3, 2008 edition. The article notes that the number of businesses filing for Chapter 11 in Philadelphia and Wilmington has not increased dramatically, despite the economic slowdown, partly because troubled businesses are increasingly turning to out-of-court workouts and pre-packaged agreements rather than subjecting themselves to the more expensive nature of Chapter 11 under the new U.S. Bankruptcy Code. However, while there has not yet been an apparent increase in filings, the article emphasized that troubled companies can only hold out for so long before being forced to file for Chapter 11 protection. “I think it’s going to get busier before it goes the other way,” LePore noted.