In Bloomberg Law’s Chapter 11 Petitions and Litigation Midyear 2022 Report, we examined Chapter 11 bankruptcy filings in the first half of 2022. We paid especially close attention to megacases—nonindividual cases with more than $50 million in assets—and identified the leading jurisdictions where such cases are being filed.
With a sizable lead over other bankruptcy courts, the District of Delaware is 2022’s top jurisdiction for Chapter 11 megacases—and will likely remain so for the rest of the year.
Behind Delaware’s 14 filings of over $50 million are the Southern District of Texas and the Southern District of New York (each with six filings), the Northern District of Texas (five), and the District of New Jersey (three). Affiliate cases jointly administered under a lead case are not counted in these totals.
The Northern District of Texas has been trying to make a play for being a megacase magnet, for example, by developing Procedures for Complex Chapter 11 Cases, similar to those that exist in the Southern District of Texas. While the procedures are still under development, efforts to attract cases to the Northern District appear to be paying off and it will be interesting to see where it lands at the end of the year.
In July, the Southern District of New York, often seen as one of the big three megacase jurisdictions (along with Delaware and S.D. Tex.), bumped the Northern District of Texas from the midyear No. 3 spot by adding three major filings to its total, including Voyager Digital, Celsius Network, and SAS, the Scandanavian airline. Additional foreign airline or crypto-related bankruptcies may help the Southern District of New York maintain its place among the top three megacase venues, as it appears to be a preferred district for those types of cases.
(Updated the fourth paragraph to reflect ongoing efforts to amend Procedures for Complex Chapter 11 Cases in the Bankruptcy Court for the Northern District of Texas.)
For more Chapter 11 filings trends, venues, law firms, judges, preference litigation, Subchapter V trends, plan confirmation speed and more, download our free Chapter 11 Petitions and Litigation Midyear 2022 Report, here (for subscribers) and here (for non-subscribers)
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