Tampa Bay Bankruptcy Surge Triggers Rapid Business Sales

In the Tampa Bay region, Chapter 11 reorganisations are facing a striking new challenge. The regular process of restructuring debts and giving companies a fresh start is increasingly being replaced by rushed asset sales or near-immediate ownership transfers. According to Ryan Reinert—a creditors’ rights attorney and partner at Shutts & Bowen LLP in Tampa—this shift is happening because many businesses simply don’t have the runway to execute the textbook turnaround.

Reinert points out that even companies which may have underlying viability often resort to fast exits because the financing necessary to refinance debt or fund capital improvements just isn’t available. New money is expensive, he says, making the standard Chapter 11 exit increasingly impractical.