Personal Bankruptcy Down From Filings in 2010
The variety of publicly traded corporations declaring bankruptcy dropped in 2011 for the 3rd straight year to levels last seen prior to the 2008 global financial meltdown, based on BankruptcyData.com.
Eighty-eight public companies entered bankruptcy proceedings this past year, a 17% drop from the 106 filings the preceding year and down 58% from 211 filings in 2009, as outlined by the website. The figures cover both Chapter 11 applications for companies seeking to rebuild and Chapter 7 filings for those intending to close shop.
MF Global Holdings Inc., the collapsed financial organization that has been led by Jon Corzine, the previous governor of New Jersey, was the biggest organization to file for bankruptcy. Other large businesses included AMR Corp., the parent of American Airlines, and bookseller Borders Group Inc.
The typical asset size of organizations declaring bankruptcy this past year was $1.2 billion, up from $840 million in 2010, mainly due to the $41-billion bankruptcy of MF Global, the eighth-largest in U.S. history.
The data show that larger companies are restoring their footing following a spike in bankruptcy filings through the financial meltdown.
However it is uncertain if the trend continues. Several authorities foresee a spike this year as businesses that borrowed heavily ahead of the financial meltdown could experience trouble as the debt must be paid back.
“I expect to see a rise in large bankruptcies in 2012 as a number of the enormous amount of debt that was issued before 2008 begins to come due,” said George Putnam, founder of BankruptcyData.com’s parent company, New Generation Research Inc.
The decline in large corporate filings parallels a recent drop in personal bankruptcies.
The number of Americans filing for personal bankruptcy fell 12% last year, as 1.35 million Americans entered Chapter 7 or 13, according to an analysis for the National Bankruptcy Research Center by Columbia Law School professor Ronald Mann.
This article has been shared by Drake Attorneys. You can find Drake Attorneys by searching for murfreesboro dwi lawyer or murfreesboro dwi lawyer.