This paper examines the events following financial distress for 102 public junk bond issuers. It finds that out-of-court debt relief mainly comes from junk bond holders, while banks rarely forgive principal but often defer payments and waive covenants. Asset sales are crucial for avoiding bankruptcy, though they are limited by industry factors. Companies that restructure their bank debt but do not restructure public debt or sell major assets or merge go bankrupt. The structure of a company's liabilities affects its likelihood of bankruptcy, with companies having both secured bank and private debt, or complex public debt structures, being more prone to bankruptcy. There is no evidence that more profitable distressed companies are more successful in dealing with financial distress. Capital expenditure reductions are significant, with 83% of firms reducing capital expenditures from the year before distress to the year after. The paper concludes that banks play a limited role in resolving financial distress, and that comprehensive debt restructurings of both bank and public debt are not common due to potential costs or impediments.This paper examines the events following financial distress for 102 public junk bond issuers. It finds that out-of-court debt relief mainly comes from junk bond holders, while banks rarely forgive principal but often defer payments and waive covenants. Asset sales are crucial for avoiding bankruptcy, though they are limited by industry factors. Companies that restructure their bank debt but do not restructure public debt or sell major assets or merge go bankrupt. The structure of a company's liabilities affects its likelihood of bankruptcy, with companies having both secured bank and private debt, or complex public debt structures, being more prone to bankruptcy. There is no evidence that more profitable distressed companies are more successful in dealing with financial distress. Capital expenditure reductions are significant, with 83% of firms reducing capital expenditures from the year before distress to the year after. The paper concludes that banks play a limited role in resolving financial distress, and that comprehensive debt restructurings of both bank and public debt are not common due to potential costs or impediments.