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DISTRESSED DAILY: Businesses Go Bust at Lowest Rate in 16 Years

July 8, 2021, 12:00 PM

Zombies eat brains. Zombie companies eat money. And right now, there’s plenty of it, helping business bankruptcies plunge to a 16-year low for the first six months of the year.

As of June 30, just 2,168 cases have been filed in the U.S., the lowest number since 2006, when bankruptcy services company Epiq AACER started keeping records.

“What is ultimately driving this is the incredibly accommodating financial market which is driven by the accommodating Fed policy,” said Joff Mitchell, co-leader of restructuring services at AlixPartners.

Several financial measures help tell the story, Mitchell said in an interview. The ...