More U.S. companies have sought bankruptcy protection during the last two days than in the prior two weeks combined, data compiled by Bloomberg show. The seven filings since Sunday exceeds the month’s five through June 13, which was relatively light for companies seeking shelter from creditors.
The Chapter 11 spree was a mix of consumer names like
This week’s filings pushed the year’s bankruptcy total to 111, the most since 2009 for the first six months of a year, data compiled by Bloomberg show.
Filings from the consumer cyclical sector total 32 year-to-date, the most for any comparable period since 2009, when there were 41. Consumer non-cyclical filings total 26 -- also highest since 2009 -- and the sector remains under pressure from lockdowns that have crushed demand.
The energy sector is the second biggest contributor to this year’s bankruptcy surge.
Chesapeake in Focus
The amount of distressed bonds and loans outstanding fell to $350 billion as of Monday’s open, a 10% decline since June 5. It’s down from $544 billion on May 15, data compiled by Bloomberg show, and the distressed bond universe is shrinking faster than that of leveraged loans.
There were 708
Intervention by the Federal Reserve injected liquidity that lifted credit across the board. But Bloomberg Intelligence analyst
“Unprecedented cash burn and unemployment will drive distressed supply to new highs,”
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