Big Bankruptcies Sweep the U.S. in Fastest Pace Since May 2009

Source: Bloomberg

In the last month, 27 companies reporting at least $50 million in liabilities sought court protection from creditors, adding to the list of similar companies who have been nearing bankruptcy this year. The May numbers increase the total number of companies of this type to file for bankruptcy to 98 this year.

In May of 2009, 29 major companies filed for bankruptcy in May, combining with the 142 major companies within the first four months. The numbers now are the highest since these 2009 statistics, and many experts predict that they will not decrease in the foreseeable future.

The influx of bankruptcy filings shows a contrast from the U.S. credit markets, where large corporations have been able to borrow money at the fastest pace on record (over $1 trillion in the first five months of the year). However, for weaker companies, the current state of the economy has eliminated their revenues and pushed them into debt, forcing them to seek help in bankruptcy court.

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