Factbox: US corporate bankruptcies at highest level since 2020

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12/10/2023 12:23

(Updates chart with data for September and table with latest bankruptcy
announcements)
    By Bansari Mayur Kamdar
       Oct 12 (Reuters) - U.S. corporate bankruptcies have hit their highest
level since 2020 as companies feel the heat of decades-high interest rates and
sticky inflation with the era of easy money drawing to a close.
    Chapter 11 filings in the first nine months of 2023 have surpassed last
year's total filings, according to data from S&P Global Market Intelligence.
    There were 62 corporate bankruptcy petitions in September, the data showed,
bringing the year-to-date count to 516, its highest since 2020.
    
    
    While consumer discretionary companies have topped the number of
bankruptcies across sectors so far this year, healthcare firms saw the most
bankruptcies for a second consecutive month in September.
    Notable bankruptcies in 2023 with over $1 billion in liabilities:
    
 Company           Bankruptcy  Reason
                   date        
 SmileDirectClub   Sept 29     The dental products maker voluntarily filed for
                               Chapter 11 and said it was seeking more capital,
                               with its founders committing to invest at least
                               $20 million.
 Amyris            Aug 9       The synthetic biotech company filed for
                               bankruptcy and plans to sell its consumer brands
                               to shore up its liquidity.
 Yellow Corp       Aug 6       The trucking firm filed for bankruptcy and said
                               it would wind down, after struggling with a
                               mounting debt load.
 Voyager Aviation  July 27     The commercial aircraft leasing company filed
 Holdings                      for bankruptcy, concurrently announcing a sale
                               deal with an affiliate of Azorra Aviation.
 Cyxtera           June 4      The data-center operator filed as it struggles
 Technologies                  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 filed due to depressed
                               demand for aircraft maintenance and litigation
                               over its efforts to restructure its debt.
 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          May 15      The KKR & Co Inc-backed medical staffing firm
 Healthcare                    filed for bankruptcy, hit by high labor costs
                               and a long battle with insurer UnitedHealth.
 Kidde-Fenwal      May 14      The Carrier Global unit filed for bankruptcy,
                               buckling 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 more
 International                 than $1 billion in debt due in 2024 filed for a
                               second time to help implement its restructuring.
 Whittaker, Clark  Apr 26      The talc supplier filed for bankruptcy, citing a
 & Daniels                     "deluge" of lawsuits alleging its talc products
                               caused asbestos exposure and cancer.
 Bed Bath &        Apr 23      Bed Bath & Beyond filed for bankruptcy after the
 Beyond                        home goods retailer failed to secure funds to
                               stay afloat.
 LTL Management    Apr 4       The Johnson & Johnson talc unit filed 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     Mar 17      SVB Financial Group filed for bankruptcy to seek
 Group                         buyers for its assets, days after its former
                               unit Silicon Valley Bank was taken over by U.S.
                               regulators.
 Diamond Sports    Mar 14      The company, which provides local television
 Group                         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 restructured its
                               business.
 Serta Simmons     Jan 23      The mattress maker filed for bankruptcy in an
 Bedding                       effort to eliminate most of its debt.
 Party City        Jan 17      The party supplies retailer filed for
 Holdco                        bankruptcy, as high inflation took a toll on
                               consumer spending.
 
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US corporate bankruptcy filings highest since 2020    https://tmsnrt.rs/46Nl3LQ
Notable US bankruptcies in 2023 with over $1 billion in liabilities    https://tmsnrt.rs/46rhJGI
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 (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva,
Shounak Dasgupta and Vinay Dwivedi)
 ((BansariMayur.Kamdar@thomsonreuters.com; Follow on X: @bansarikamdar))