US bankruptcies top 500 mark as coronavirus wreaks havoc


Business bankruptcies in the United States continue to grow amid the coronavirus pandemic as 22 new companies added their names to a growing list of bankruptcies in 2020 in the past two weeks, according to an analysis by S&P Global Market Intelligence.

A total of 509 companies have filed for bankruptcy this year as of October 4, exceeding the number of filings in any comparable period since 2010.

Market Intelligence analysis is limited to public companies or private companies with public debt whose assets or liabilities at the time of filing for bankruptcy are at least $2 million. Private companies with no public debt must declare at least $10 million in assets or liabilities at the time of filing.

Companies that entered bankruptcy proceedings between September 21 and October 4 include iindependent oil and gas producer Oasis Petroleum Inc.; Bouchard Transportation Co. Inc., which operates a fleet of barges and tugboats; oil services company FTS International Inc.; the film distribution company Aviron Pictures LLC; oil and gas company Lonestar Resources US Inc.; and King Mountain Tobacco Co. Inc., which manufactures cigarettes. Only three companies – Northwest Regional ASC LLC, Reata Properties LP and Continuity Logic LLC – filed involuntary claims against them during the period.

READ MORE: Sign up for our weekly coronavirus newsletter hereand read our latest crisis coverage here.

Oasis, who filed

a Chapter 11

Sept. 30 was the only company to claim more than $1 billion in debt when it filed for bankruptcy during the period. The company signed a restructuring support agreement with all of its revolving credit lenders
and holders of 52% of its bonds on a pre-packaged restructuring plan by which it aims to reduce its debt by $1.8 billion.

Lonestar based in Texas on September 30

for Chapter 11 protection, listing $560 million in total assets and $626.2 million in total liabilities.

Meanwhile, 54 companies went bankrupt in September, matching the number of filings in August.


About Author

Comments are closed.