“After DFW companies declare bankruptcy, what happens to their corporate headquarters?”
North Texas commercial real estate news has been dominated lately by headquarters moves…
“I would say most of the time a company’s headquarters is part of the bankruptcy case and is frequently in play. What happens to the headquarters varies a lot and depends upon the type of bankruptcy it is,” said David Bennett, Thompson & Knight’s Bankruptcy and Restructuring practice leader, who is based in Dallas. “You’ll have either a sale case or a reorganization case.”
“I think there’s going to be an increase in restructuring activity in 2021. Chapter 11 is a last resort and I’m not going to predict how many companies will invoke Chapter 11, but I do think there will be an uptick,” said Bennett.
“COVID has put pressure on a number of sectors and it has led to an increase in the amount of restructuring activity. The restaurant business, hospitality business, and airlines have all suffered. The question for next year concerns companies whose creditors have given them a grace period. How many of those situations are going to have to go through a more formal restructuring to come up with a long-term solution?”