According to empirical studies, the combination of secured private debt and numerous public debt issues (in a distressed firm's capital structure) impedes out-of-court debt restructuring and increases the probability of a Chapter 11 filing.

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Empirical studies suggest that a complex capital structure, including both secured private debt and multiple public debt issues, can make out-of-court debt restructuring more difficult. This complexity often leads to coordination problems among different classes of creditors, increasing the likelihood of resorting to a Chapter 11 bankruptcy filing to reorganize the firm's debts under court supervision.

According to Empirical Studies, the Combination of Secured Private Debt