U.S. Corporate Bankruptcy Filings Continue Downward Trend
Bankruptcy, Restructuring and Creditors' Rights Team Chair John Monaghan was quoted in a Dow Jones Daily Bankruptcy Review article titled "U.S. Corporate Bankruptcy Filings Continue Downward Trend."
The article reports that corporate bankruptcy filings in November continued their 2011 slide, falling nine percent from October and 27 percent from November 2010. The November total of 5,176 is the lowest since March 2008; however, according to Mr. Monaghan, this "decline in the filings was pretty much predicted by the pundits." The decrease doesn't indicate an upturn in the economy, just that "there is a lack of pressure from debt holders across the board," he said. "If there's no pressure from debt holders, then there's no filings. Folks decided to wait it out a bit and to extend debt maturities." Mr. Monaghan said that filings are expected to return to normal, higher rates by the fourth quarter of 2012 or the first quarter of 2013. “The word within the industry is that there are a lot of maturities that have been suspended that will rise again,” he said.