Factbox: U.S. corporate bankruptcies at highest level since 2010

Party City Holdco

13/07/2023 11:42

(Updates chart and table with data for June)
    By Bansari Mayur Kamdar
       July 13 (Reuters) - U.S. companies are feeling the heat of decades-high
interest rates and sticky inflation, with several of them filing for bankruptcy
protection as the era of easy money draws to a close.
    Total Chapter 11 filings for the first half of the year eclipsed those of
any other comparable period since 2010, data from S&P Global Market Intelligence
showed.
    There were 54 corporate bankruptcy petitions in June, the same as the
previous month, the report showed, with the year-to-date count nearly doubling
to 340 from a year ago.
    
    
    Consumer discretionary companies topped the number of bankruptcies than any
other sector in 2023. Industrial and healthcare sectors also saw a sharp uptick
in June.
        Fifteen companies with more than $1 billion in liabilities filed for
bankruptcy in the first half of the year, with four of them filing in June,
making it the month with the most bankruptcy filings so far this year. 

 Companies with over $1    Bankruptcy    Reason
 billion in liabilities    announcement  
                           date          
             Cyxtera       June 4                    The data-center operator
 Technologies                            filed for bankruptcy as it struggles
                                         to pay down debt and faces funding
                                         crunch.
                                         
             PGX Holdings  June 4                    PGX filed for bankruptcy
                                         as it lost a court case brought by
                                         the CFPB over its billing for credit
                                         repair services.
                                         
             Incora        June 1                    The aerospace supplier,
                                         formed through the merger of Wesco
                                         and Pattonair, filed for bankruptcy
                                         due to depressed demand for aircraft
                                         maintenance and litigation over its
                                         efforts to restructure its debt
                                         outside of bankruptcy.
                                         
             Diebold       June 1                    The ATM maker filed for
 Nixdorf                                 bankruptcy, saying it had reached an
                                         agreement to reduce the company's
                                         overall debt by $2.1 billion.
                                         
             Envision       May 15       The KKR & Co Inc-backed  KKR.N 
 Healthcare                              medical staffing firm filed for
                                         bankruptcy, impacted by high labor
                                         costs and a long battle with insurer
                                         UnitedHealth Group  UNH.N .
             Kidde-Fenwal   May 14       The unit of Carrier Global   CARR.N 
                                         that specializes in fire control
                                         systems, filed for bankruptcy, as it
                                         buckled under the weight of lawsuits
                                         alleging that "forever chemicals" in
                                         its firefighting foam products have
                                         contaminated water sources around
                                         U.S. airports and military bases.
             Monitronics    May 14       The home security systems provider
 International                           with more than $1 billion in debt due
                                         in 2024 filed for  bankruptcy a
                                         second time to help implement its
                                         restructuring.
             Whittaker,     Apr 26       The talc supplier filed for
 Clark & Daniels                         bankruptcy, citing a "deluge" of
                                         lawsuits alleging its talc products
                                         caused asbestos exposure and cancer.
             Bed Bath &     Apr 23       Bed Bath & Beyond filed for
 Beyond                                  bankruptcy after the home goods
                                         retailer failed to secure funds to
                                         stay afloat.
             LTL            Apr 4        The Johnson & Johnson talc unit filed
 Management                              for bankruptcy for a second time with
                                         the intent to present a
                                         reorganization plan with a proposed
                                         $8.9 billion settlement to a judge as
                                         soon as May 14. 
             SVB            Mar 17       SVB Financial Group filed for
 Financial Group                         bankruptcy to seek buyers for its
                                         assets, days after its former unit
                                         Silicon Valley Bank was taken over by
                                         U.S. regulators.
             Diamond        Mar 14       Diamond Sports Group, which provides
 Sports Group                            local television broadcasts for
                                         nearly half of NBA, NHL and MLB
                                         games, filed for bankruptcy, caught
                                         between expensive broadcast rights
                                         agreements and sports viewers'
                                         cord-cutting habits.
             Avaya          Feb 14       Avaya filed for bankruptcy and
                                         secured a financing of $780 million
                                         as it restructures its business.
             Serta          Jan 23       Mattress maker Serta Simmons Bedding
 Simmons Bedding                         filed for bankruptcy in an effort to
                                         eliminate most of its debt.
             Party City     Jan 17       The party supplies retailer filed for
 Holdco                                  bankruptcy, as persistently high
                                         inflation takes a toll on consumer
                                         spending.
 Source: S&P Global Market Intelligence, Refinitiv Eikon

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54 new US corporate bankruptcies take H1 tally to highest level since 2010    https://tmsnrt.rs/44B5w0H
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 (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and
Vinay Dwivedi)
 ((BansariMayur.Kamdar@thomsonreuters.com;  Twitter: @BansariKamdar;))