Research from the Brookings Institute finds that the COVID-19 pandemic's impact on firm profits and revenues thus far is comparable to the worst quarter of the 2008-2009 financial crisis. The researchers further project that bankruptcy filings will increase by as much as 140 percent this year compared with last year. [Brookings; Sept. 23, 2020]

Bloomberg reports that Malaysia Airlines Bhd. has been in contact with lessors, creditors, and key suppliers in order to effectuate an urgent financial restructuring as the company approaches a potential liquidity crisis in November of 2020. [Bloomberg; Oct. 2, 2020]

Reporting from the Wall Street Journal indicates that satellite communications company Ligado Networks LLC is seeking approximately $4 billion in additional debt financing in order to avoid a chapter 11 bankruptcy filing. Ligado currently has approximately $2 billion in loans coming due in December of 2020. [WSJ; Oct. 1, 2020]

Reuters reports that Lonestar Resources US Inc. filed for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the Southern District of Texas on Wednesday, September 29, 2020. Lonestar will reportedly seek to eliminate approximately $390 million as part of its plan of reorganization. [Reuters; Oct. 1, 2020]

Visit us at

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.