Corporate Bankruptcy Filings Trend Upward

Bloomberg Law recently covered a marked increase in major corporate bankruptcy filings in the first week of April 2024.

According to Bloomberg data, “if the pace continues through Saturday, the week will top the end of April 2009 when 16 big companies went bankrupt just as the US was climbing out of the Great Recession.” Nine companies filed for Chapter 11 since Sunday, March 31, five of which filed in Delaware.

Derek Abbott, a Morris Nichols bankruptcy and restructuring partner with more than 25 years of experience in Delaware bankruptcy proceedings, spoke with Bloomberg Law about the trend. “We have such a broad and diverse economy that even when there is good stuff happening overall, there is a portion of the business sector that is still struggling,” Derek said, adding that telecommunications, retail, and pharmaceutical sectors are three areas to watch.

Read the full article, “Business Bankruptcies Jump as Slow Wave of Failure Speeds Up,” from Bloomberg Law’s Bankruptcy Law News.