Recovery From Distressed Debt Swaps Beats Bankruptcy, Fitch Says

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By Georgia Hall

July 15, 2025 at 5:17 PM EDT

Distressed debt exchanges have been delivering better average outcomes for lenders compared to bankruptcies, according to a Fitch Ratings report.

Such swaps have yielded an average recoveries of between 77.8% and 92.8%, according to Fitch, which analyzed transactions from 2024 through the first quarter.