By Bansari Mayur Kamdar
(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 in the first seven months of 2023 surpassed total filings for the previous year, data from S&P Global (NYSE:SPGI) Market Intelligence showed.
There were 64 corporate bankruptcy petitions in July, the note added, bringing the year-to-date count to 402.
Consumer discretionary companies topped the number of bankruptcies than any other sector this year, while industrials clocked the highest number of filings in July.
Companies with Bankruptcy Reason
over $1 billion announcement
in liabilities date
Aug 6 The trucking firm filed for Chapter
Yellow Corp 11 bankruptcy protection and said it
would wind down, after struggling
with a mounting debt load.
July 27 The commercial aircraft leasing
Voyager Aviation company sought bankruptcy protection,
Holdings concurrently announcing a sale
agreement with an affiliate of Azorra
Aviation Holdings.
June 4 The data-center operator filed for
Cyxtera bankruptcy as it struggles to pay
Technologies down debt and faces funding crunch.
PGX June 4 PGX filed for bankruptcy as it lost a
Holdings court case brought by the CFPB over
its billing for credit repair
services.
June 1 The aerospace supplier, formed
Incora 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.
June 1 The ATM maker filed for bankruptcy,
Diebold Nixdorf (OTC:DBDQQ) saying it had reached an agreement to
reduce the company's overall debt by
$2.1 billion.
May 15 The KKR & Co (NYSE:KKR) Inc-backed medical
Envision staffing firm filed for bankruptcy,
Healthcare impacted by high labor costs and a
long battle with insurer UnitedHealth (NYSE:UNH)
Group.
May 14 The unit of Carrier Global (NYSE:CARR) that
Kidde-Fenwal 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.
May 14 The home security systems provider
Monitronics with more than $1 billion in debt due
International in 2024 filed for bankruptcy a
second time to help implement its
restructuring.
Apr 26 The talc supplier filed for
Whittaker, Clark bankruptcy, citing a "deluge" of
& Daniels lawsuits alleging its talc products
caused asbestos exposure and cancer.
Bed Apr 23 Bed Bath & Beyond (OTC:BBBYQ) filed for
Bath & Beyond bankruptcy after the home goods
retailer failed to secure funds to
stay afloat.
LTL Apr 4 The Johnson & Johnson (NYSE:JNJ) 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.
Mar 14 Diamond Sports Group, which provides
Diamond Sports local television broadcasts for
Group 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 Jan 17 The party supplies retailer filed for
City Holdco bankruptcy, as persistently high
inflation takes a toll on consumer
spending.
Source: S&P Global Market Intelligence, Refinitiv Eikon