âIf you think of Michigan and the auto, it’s mostly a mid-market business. You have OEMs and Magnas, but for the most part it’s a few thousand vendors with a number. business less than $ 1 billion, âWybo said. “So if you think of an average middle market industrial company, the government has really been backing this for the last 18 months.”
Federal legislation passed just before COVID-19 criticized the United States, as well as provisions of the CARES Act, passed in the wake of the pandemic, have also helped keep business bankruptcies at bay, says Marc Swanson , a principal and group head of bankruptcy in the law firm Miller Canfield Paddock & Stone PLC, based in Detroit.
But Swanson and others in the bankruptcy arena admit he is unlikely to be this silent any longer.
âIt seems inevitable that more companies will look to bankruptcy to reorganize and consolidate their balance sheets,â Swanson said.
Indeed, the ongoing disruptions in supply chains – sometimes referred to as the ‘boost’ – coupled with rising inflation mean that companies are virtually guaranteed to start feeling pressure on their balance sheets and to look to restructuring, said Wybo, who said he didn’t expect a flood like was seen a decade ago, but still expects a substantial increase in the months to come.