U.S. Bankruptcy Tracker: Filings Hit Pre-Virus Low on Easy Money
- Month sees fewest Chapter 11s since March after busy summer
- Cash is flooding into risky debt markets, providing a lifeline
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The pace of bankruptcy filings by large U.S. companies is the slowest since the Covid-19 pandemic began, doused by cheap funding that keeps even risky borrowers afloat.
“The level to which our market was propped up on cheap money is huge,” Nellwyn Voorhies, president of corporate restructuring services provider Donlin Recano & Co. Inc., said in an interview. “Those chickens are going to come home to roost,” Voorhies said, predicting a pick up in the pace of bankruptcies later this year.