Corporate Bankruptcies Are Soaring; 2023 Filings Highest Since 2010

[Ptarmigan]

Corporate Bankruptcies Are Soaring; 2023 Filings Highest Since 2010
https://www.theepochtimes.com/corporate-bankruptcies-are-soaring-2023-filings-highest-since-2010_5284749.html

The most recent data from S&P Global show that corporate bankruptcies are picking up again.

More than 230 companies have filed for bankruptcy through the end of April, more than double the comparable figure a year ago. UBS also found in a recent study that bankruptcies worth $10 million or more had jumped to an average of about eight per week by late February.

Just last week, corporate America experienced the worst 48-hour stretch of bankruptcies since at least 2008, according to Bloomberg.

James Gellert, CEO of Rapid Ratings International, a company that evaluates the financial health of public and private companies, said many of these troubled companies have similar traits.

Corporate bankruptcies are up.

[Ptarmigan]

Credit Crunch Fuels 48-Hour Bankruptcy Rush With Seven Filings
https://finance.yahoo.com/news/us-credit-crunch-claims-seven-102459608.html

(Bloomberg) -- At least seven large companies filed for Chapter 11 bankruptcy protection in less than 48 hours, a breakneck pace of restructurings that included once-hot digital-broadcaster Vice Media LLC and KKR & Co.-backed Envision Healthcare Corp.

That’s the largest number of filings on record during a two-day period since at least 2008, according to Bloomberg-compiled data on companies with at least $50 million of liabilities. And it comes as two Federal Reserve officials signaled that they favor a pause in their aggressive monetary-tightening campaign amid the ongoing fallout in credit markets.

Firms across every sector are struggling with higher interest costs — making it more challenging to refinance loans and bonds — while corporate executives are drawing more scrutiny from investors and creditors.

The weekend also saw filings from home security company Monitronics International Inc., chemical producer Venator Materials Plc, oil producer Cox Operating LLC, fire protection firm Kidde-Fenwal Inc. and biotechnology company Athenex Inc.

7 companies filed for bankruptcy for the week of May 14 to 20, 2023.

They are Vice Media, Monitronics International Inc., Venator Materials Plc, Cox Operating LLC, Kidde-Fenwal Inc. and Athenex Inc.

[Eupher]

If it's the same Monitronics company that makes/made home security systems, I had one of those systems in my Utah home 20 years ago.

I think we're seeing another result of the pandemic. Some companies and many thousands of small businesses aren't coming back.

[DefiantSix]

If it's the same Monitronics company that makes/made home security systems, I had one of those systems in my Utah home 20 years ago.

I think we're seeing another result of the pandemic. Some companies and many thousands of small businesses aren't coming back.

As outlined in the whole plan of The Plandemic...   

[Old n Grumpy]

Target and anheiser Busch should be on the list to

[Ptarmigan]

As outlined in the whole plan of The Plandemic...   

How Covid lockdowns primed the current financial crisis
https://thegrayzone.com/2023/03/15/covid-lockdowns-financial-crisis/

The lockdowns and the stimulus required to keep the economy alive helped drive inflation. Then the Fed jacked up interest rates. And all hell broke loose.
On Friday March 10th, 2023, Silicon Valley Bank (SVB) died of Covid. Alright, it’s a little more complicated than that, but Covid lockdowns followed by massive government stimulus were a critical – and massively under-acknowledged – factor in propelling the bank’s demise.

At the heart of the crisis is the gigantic pile of low-interest debt that was issued during the height of the pandemic. While private-sector pandemic-era debt like corporate bonds also soared, US government debt like Treasury bonds piled up.

In a nutshell, during the pandemic the government issued enormous amounts of extremely low interest government debt — about $4.2 trillion of it. But now interest rates, including on government debt, are higher than they have been in 15 years and investors are dumping their old low-interest debt. As they dump, the resale price of the old debt goes down. The more it declines, the more investors want to dump. And thus, a panic is born.

To understand the problem fully, the question of US government debt has to be put into its larger context, which is: the pandemic response as a whole.

When news of the Covid virus first broke in December 2019, the 2 Year Treasury bond was being offered at 1.64% interest; the 10 year was at about 1.80%, and the resale value of such bonds on secondary markets was strong. Then, in March 2020, as Covid cases and deaths spiked, the US began to shutter its economy with panicked lockdowns that were supposed to “flatten the curve” or slow the spread of the virus and thus protect the hospitals. But Covid was politicized and the lockdowns were extended. 

How COVID lockdown caused the financial problem we are seeing today.