Reorganization is now increasingly favored over liquidation, according to an analysis of COVID-era corporate bankruptcy filings by S&P Global Market Intelligence. 

Almost 62% of corporate bankruptcy filings last year sought to reorganize or restructure, the highest watermark since 2010, according to S&P data—and 2021 filings are set to outpace last year's numbers. Conversely, in 2018 and 2019, liquidations were more commonly sought in bankruptcy filings. 

Chapter 11 proceedings allow companies to file restructuring plans, while Chapter 7 filings liquidate the company's assets. Bigger companies tend to choose Chapter 11, particularly if they enjoy strong brands recognition and operation in niche markets Diane Shand, a senior director at S&P Global Ratings, told S&P Global in an interview. And that process was particularly attractive to many more established brands last year, as the pandemic created uncertainty in global markets.