The elevated pace of large corporate bankruptcy filings that began in early 2023 continued through the latter half of 2024 and into the first half of 2025, according to a new report from Cornerstone Research.
 
The report, Trends in Large Corporate Bankruptcy and Financial Distress—Midyear 2025 Update, found a 4% increase in Chapter 7 and Chapter 11 filings among public and private companies with assets exceeding $100 million. Over the last 12 months (2H 2024–1H 2025), 117 large companies filed for bankruptcy, up from 113 in the previous 12 months (2H 2023–1H 2024). This figure is 44% above the 2005–2024 annual average of 81 bankruptcies. The report also found that the use of liability management transactions (LMTs) reached a record level with 46 completed transactions in 2024 and 27 in 1H 2025. 
 
Over the past 12 months, there were 32 mega bankruptcies (those filed by companies with over $1 billion in reported assets), up from 24 in the prior 12 months and well above the 2005–2024 historical average of 23. In the first half of 2025, there were 17 mega bankruptcies, the highest number of any half-year period since the COVID-19 outbreak in 2020. 
 
“Consistent with prior years, companies filing mega bankruptcies over the last year have continued to fault high inflation and interest rates, which have impacted consumer demand and raised the costs of operating and raising capital,” said Matt Osborn, a principal at Cornerstone Research and coauthor of the report. “This past year, large corporate bankruptcy filers have increasingly pointed to shifts in the regulatory, legal, and policy landscape as another key driver of financial distress, in particular policies relating to renewable energy or international trade.”
 
The manufacturing industry had the highest share of bankruptcy filings across all industries, where 67% of manufacturing mega bankruptcies cited the regulatory, legal, and policy landscape as a key financial distress driver. Bankruptcy filings in the services industry also remained elevated, where mega bankruptcies most often cited shifts in consumer preferences, market competition, or other industry factors.
 
The report further identified that LMTs have become more complex as their use increases, with multiple deals in 2025 incorporating two or more common elements, such as uptiering, drop-down, or “double-dip.” In 1H 2025, at least 22 LMTs that launched or closed involved elements of uptiering, four involved drop-down LMTs, and at least five transactions utilized the “double-dip” feature. 
 
The most common venues for bankruptcies continued to be Delaware and the Southern District of Texas, accounting for 40% and 24%, respectively, over the past 12 months. The Northern District of Texas topped the District of New Jersey and the Southern District of New York for the first time during 2005–1H 2025 and became the third most common venue for the first time since 2012.