April 16 - Corporate bankruptcies are on the rise in America
Article: Misc.
“Come down to Houston,” William Snyder, leader of the Deloitte Corporate Restructuring Group, told Reuters. “You’ll see there is just a stream of consultants and bankruptcy attorneys running around this town,” he said. But it’s not just in Houston or in the oil patch. It’s in retail, healthcare, mining, finance — bankruptcies are suddenly booming, after years of drought.
In the first quarter, 26 publicly traded corporations filed for bankruptcy, up from 11 at the same time last year, Reuters reported. Six of these companies listed assets of over $1 billion, the most since financial-crisis year 2009. In total, they listed $34 billion in assets, the second highest for a first-quarter since before the financial crisis, behind only the record $102 billion in 2009.
This isn’t the list of a single troubled sector that ran out of luck. This isn’t a single issue, such as the oil-price collapse. This is the list of a broader phenomenon: too much debt across a struggling economy. And now the reckoning has started.
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