U.S. Bankruptcy Tracker: New Filings Muted as Borrowers Dig In
- Four large firms have sought Chapter 11 protection this year
- Cases may pick up as definition of ‘new normal’ becomes clear
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Four large firms have filed for bankruptcy so far in 2021, a relative slowdown after the busiest year for Chapter 11 filings since the financial crisis.
“The slowness going into early January is just a function of the shock effect of Covid and the related lockdown orders working their way through the system,” said Vladimir Jelisavcic of Cherokee Acquisition, an investment banking firm focused on bankruptcy claims and receivables. “Whenever you have a one-time shock event, you have a spike and a sort of lag.”