Companies that spent years relying on cheap debt are discovering that refinancing has become one of the biggest financial hurdles of 2026. While the broader U.S. economy has remained resilient, a growing number of businesses are still struggling with higher interest expenses, slowing revenue growth and tighter credit conditions, keeping corporate bankruptcy filings well above pre-pandemic norms.

Fresh data released Thursday by S&P Global Market Intelligence shows U.S. corporate bankruptcy filings remain elevated this year, particularly among smaller and highly leveraged companies. Although the pace has moderated from some of last year’s peaks, restructuring professionals say many businesses continue to face pressure as loans arranged during the low-rate era come due.

The strain is most visible in sectors with thin profit margins or heavy borrowing needs. Retailers, healthcare providers, transportation companies, restaurants and commercial real estate firms continue accounting for a significant share of new restructuring activity. Many companies are finding that refinancing existing debt now comes with substantially higher interest costs, forcing management teams to cut expenses, sell assets or renegotiate with lenders.

Banks have generally maintained conservative lending standards, while private credit firms have stepped in to finance businesses unable to secure traditional loans. Even so, lenders have become increasingly selective, focusing on companies with stable cash flow and stronger balance sheets.

The trend is also affecting suppliers, landlords and employees. Corporate restructurings often delay payments throughout supply chains, reduce capital investment and increase uncertainty for businesses that depend on financially stressed customers.

Economists note that bankruptcy activity remains far below levels typically associated with a severe recession, reflecting continued consumer spending and a relatively healthy labor market. Even so, elevated financing costs are likely to keep financial stress concentrated among businesses carrying large debt loads.

Investors will continue watching upcoming earnings reports, commercial lending data and Federal Reserve policy signals for clues about whether borrowing conditions begin easing later this year. Until financing costs move meaningfully lower, restructuring experts expect bankruptcy filings to remain above long-term historical averages as companies continue adjusting to a higher-rate environment.

JBizNews Desk | Wall Street

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