Surge of Bankruptcies Will Be Next Virus Curve to Flatten

The U.S. bankruptcy system risks being overwhelmed by a wave of previously healthy companies hurt by the coronavirus seeking relief all at once in the months ahead.

So far, only a handful of big companies like Frontier Communications and LSC Communications have sought bankruptcy protection since the pandemic shut down much of the U.S. economy. Many more are expected to follow.

Just as public health officials tried flattening the curve of Covid-19 to avoid straining U.S. hospitals, bankruptcy practitioners are thinking of ways to slow the spread of financial distress to ease the burden on the U.S. bankruptcy system.

“The ...