We know anecdotally that Chapter 11 is becoming prohibitively expensive, contributing to the rise of out-of-court restructurings and LMEs. 9fin is now tracking just how costly bankruptcies can be, with a database of disclosed fees for all mega cases with $500m or more in funded debt. The fees tracked are only those incurred by the bankrupt estate, and thus do not include unofficial ad hoc groups or other fees not approved by the court.

Looking at just Chapter 11s commenced in or that have/had ongoing proceedings in 2024, the top five companies collectively racked up nearly $2bn in fees, reinforcing the costly nature of the process.