Written by - Thomas H. Curran
As cross-border insolvencies continue to evolve, a notable shift is emerging in how complex restructurings are being executed. While Chapter 11 has long been the dominant forum for large corporate reorganizations, an increasing number of companies - particularly those with international capital structures - are turning to foreign restructuring regimes as a primary venue, with Chapter 15 serving as the mechanism to extend those proceedings into the United States.
In these uncertain times, some companies are exploring ways to restructure their existing credit facilities to navigate business challenges, including cash flow shortages. Highly leveraged companies that are taxed as partnerships, such as the portfolio companies of private equity funds, must carefully consider the significant tax consequences associated with restructuring and modifying their debt obligations, especially if the company is or is likely to be in financial distress.
The casual dining and hospitality sector is navigating a period of profound upheaval, driven by macroeconomic pressures, regulatory uncertainty, and shifting consumer preferences. In this context, private equity and credit funds also face mounting distress, divergent brand fortunes, and a growing need for legal and transactional agility.
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Key Insights
- The surge of distress and insolvency that occurred in 2024 showed no signs of stopping in 2025.
- Inflation, continued regulatory changes and global uncertainty have contributed to the continued rise in insolvency appointments, especially in the construction and hospitality sectors.
- Key trends included M&A, lenders supporting an operational or balance sheet restructuring, government intervention and increased regulatory scrutiny of private capital.
1. Distress and restructuring trends in 2025
Red Lobster Seafood Co., the beloved full-service dining seafood specialty restaurant operator, is staging a comeback just one year after emerging from Chapter 11 bankruptcy. The company has taken steps to restructure its operations and improve its financial performance. With new leadership and a bold turnaround plan, the company’s future looks promising again.
Headquartered in Orlando, Florida, Red Lobster has over 500 locations in the United States and Canada. The brand has become associated with fresh seafood, welcoming guest service, and affordable prices.
An insolvency practitioner (IP) can pursue a wide range of claims when appointed as the administrator or liquidator of a company.
These include claims that already existed at the point that the company entered an insolvency process (Pre-existing Company Claims), and ones that arise on insolvency (IP Claims see below).
An IP pursues Pre-existing Company Claims as agent for and in the name of the company, and these types of claims typically include claims for debt, breach of contract, breach of duty or recovery of property.
Standard Profil’s scheme of arrangement was sanctioned by the English High Court on 9 September 2025, notwithstanding a recent Frankfurt court decision casting doubt on whether English restructuring plans and schemes of arrangement proposed by German companies would be capable of sanction by the English courts going forward as a result of recognition issues (see ‘More on this topic’).