Bracewell’s Trey Wood was one of the top business bankruptcy lawyers in Texas recently interviewed about trends and developments in financial restructuring during the first half of 2025, telling The Texas Lawbook that debtors tend to be larger companies with complex balance sheets and capital structures, making it difficult to restructure outside of bankruptcy.
“To combat against the cost of bankruptcy, companies normally enter bankruptcy with a prepacked plan of reorganization or prearranged restructuring support agreement with existing secured lenders normally swapping their debt for equity after a truncated marketing period in bankruptcy,” Wood said. “In many cases, private credit has replaced traditional banks, making a debt for equity swap through bankruptcy a more attractive and viable option. We expect these trends to continue.”
