Non-AI corporate distress is rising in the US: There have now been 9 Chapter 7 bankruptcy filings for companies with $100+ million in liabilities this year, the 4th-highest reading in history. This follows 13 and 11 large bankruptcies in 2023 and 2024. By comparison, the 2009–2010 period saw 18 such filings over the 2 years combined. Chapter 7 bankruptcies represent immediate liquidation with no reorganization, a far worse outcome than the typical Chapter 11 restructuring. Companies turn to Chapter 7 only when they cannot secure financing to survive a reorganization, a situation seen in just ~5% of large bankruptcies. Recent cases include subprime auto lender Tricolor and tech-enabled hotel chain Sonder. US bankruptcy pressures are picking up.(The Kobeissi Letter)