Erich Durlacher, a partner in Burr & Forman’s Atlanta office, authored an article for the Turnaround Management Association examining how ongoing economic pressures are influencing restructuring strategies and outcomes for middle-market companies.

In the article, Erich explores how higher interest rates, tighter credit conditions, and uneven sector performance are accelerating decision-making across restructurings. He explains that rising borrowing costs and reduced liquidity are compressing timelines and prompting earlier evaluations of workout options, noting that “rising rates and contracting advance rates are reducing liquidity and forcing earlier decisions on workout paths.”

He also discusses the risks associated with delayed action, observing that “extended delays can dissipate liquidity reserves necessary for operational restructurings,” potentially limiting available alternatives.

The article highlights how lenders and restructuring professionals are responding with enhanced reporting requirements, milestone-driven forbearance arrangements, and increased reliance on real-time financial data. Erich concludes that in the current environment, stakeholders who act promptly, maintain rigorous documentation, and ground projections in realistic assumptions are better positioned in negotiations and legal proceedings.

To read the full article, click here.