Factbox: US corporate bankruptcies hit 13-year peak in 2023

Rite Aid

10/01/2024 10:39

(Updates with data for December and year-end milestone)
    By Bansari Mayur Kamdar
       Jan 10 (Reuters) - U.S. corporate bankruptcy filings touched a 13-year
high in 2023, as elevated interest rates and sticky inflation hit the companies.
    There were 50 corporate bankruptcy petitions in December, according to data
from S&P Global Market Intelligence, bringing the total count last year to 642,
the highest since 2010.
    
    
    Consumer discretionary sector recorded the highest bankruptcies in 2023,
followed closely by healthcare and industrials companies. 
    
     Notable bankruptcies in 2023:
    
    
 Companies with over    Bankruptcy    Reason
 $1 billion in          announcement  
 liabilities            date          
 Pennsylvania Real      Dec. 10       The trust entered a restructuring
 Estate Investment                    agreement with debtors and filed for
 Trust                                Chapter 11 to implement the restructuring
                                      transactions
 WeWork                 Nov. 6        The SoftBank Group-backed startup sought
                                      bankruptcy protection after its bets on
                                      companies using more of its
                                      office-sharing space soured.
 Air Methods Corp       Oct. 24       The private equity-owned medical
                                      helicopter company filed for bankruptcy
                                      after saying its business had suffered
                                      due to rising interest rates, higher
                                      labor costs and a recent U.S. ban on
                                      "surprise" medical bills.
 Akumin                 Oct. 22       The radiology provider filed for
                                      bankruptcy and went private in a deal
                                      with Stonepeak Partners.
 Rite Aid               Oct. 15       One of the largest U.S. pharmacy
                                      retailers filed for bankruptcy as it
                                      comes under pressure from lawsuits
                                      alleging that the drugstore chain helped
                                      fuel the opioid crisis in the U.S.
 MVK FarmCo             Oct. 13       The largest producer of stone fruit in
                                      North America, doing business as Prima
                                      Wawona, filed for bankruptcy citing
                                      significant headwinds, including
                                      increased costs and weather-related
                                      impacts.
 SmileDirectClub        Sept. 29      The dental products maker voluntarily
                                      filed for Chapter 11 and said it is
                                      seeking more capital through a
                                      transaction where its founders have
                                      committed to invest at least $20 mln.
 Amyris                 Aug. 9        The synthetic biotech company filed for
                                      bankruptcy and is planning to sell its
                                      consumer brands to improve the company's
                                      liquidity position.
 Yellow Corp            Aug. 6        The trucking firm filed for Chapter 11
                                      bankruptcy protection and said it would
                                      wind down, after struggling with a
                                      mounting debt load.
 Voyager Aviation       July 27       The commercial aircraft leasing company
 Holdings                             sought bankruptcy protection,
                                      concurrently announcing a sale agreement
                                      with an affiliate of Azorra Aviation
                                      Holdings.
 Cyxtera Technologies   June 4        The data-center operator 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 Nixdorf        June 1        The ATM maker filed for bankruptcy,
                                      saying it had reached an agreement to
                                      reduce the company's overall debt by $2.1
                                      billion.
 Envision Healthcare    May 15        The KKR & Co Inc-backed medical staffing
                                      firm filed for bankruptcy, impacted by
                                      high labor costs and a long battle with
                                      insurer UnitedHealth Group.
 Kidde-Fenwal           May 14        The unit of Carrier Global  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 with
 International                        more than $1 billion in debt due in 2024
                                      filed for  bankruptcy a second time to
                                      help implement its restructuring.
 Whittaker, Clark &     April 26      The talc supplier filed for bankruptcy,
 Daniels                              citing a "deluge" of lawsuits alleging
                                      its talc products caused asbestos
                                      exposure and cancer.
 Bed Bath & Beyond      April 23      Bed Bath & Beyond filed for bankruptcy
                                      after the home goods retailer failed to
                                      secure funds to stay afloat.
 LTL Management         April 4       The Johnson & Johnson talc unit filed 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 Financial Group    March 17      SVB Financial Group filed for bankruptcy
                                      to seek buyers for its assets, days after
                                      its former unit Silicon Valley Bank was
                                      taken over by U.S. regulators.
 Diamond Sports Group   March 14      Diamond Sports Group, which provides
                                      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 Simmons Bedding  Jan. 23       Mattress maker Serta Simmons Bedding
                                      filed for bankruptcy in an effort to
                                      eliminate most of its debt.
 Party City Holdco      Jan. 17       The party supplies retailer filed for
                                      bankruptcy, as persistently high
                                      inflation takes a toll on consumer
                                      spending.
 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
US corporate bankruptcy filings highest since 2010    https://tmsnrt.rs/46Nl3LQ
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta,
Arun Koyyur, Anil D'Silva and Shinjini Ganguli)
 ((BansariMayur.Kamdar@thomsonreuters.com; Follow on X: @bansarikamdar))