US bankruptcies decline over past two weeks, but companies still struggling
US bankruptcies continued to grow in the last two weeks during the coronavirus era but at a slower pace than earlier this year, an S&P Global Market Intelligence analysis shows.
Eighteen companies added their names to the growing list of new filings between November 2 and November 15. This is well below the number of filings in comparable periods since August when Market Intelligence began tracking the bankruptcies. In the previous two-week periods, bankruptcies numbered as high as 31 and 29.
The number of bankruptcies this year is still on track to surpass the figure from 2019. In total, there have been 574 bankruptcies in 2020 as of November. 15, compared to 579 filings in all of 2019.
Market Intelligence’s analysis is limited to public companies or private companies with public debt where either assets or liabilities at the time of the bankruptcy filing are at least $2 million. Private companies without public debt must report at least $10 million in either assets or liabilities at the time of filing.
Companies that went bankrupt between November 2 and November 15 include shale gas producer Gulfport Energy Corp., security service company Interface Security Systems Holdings Inc., gym chain You Fit Health Clubs and California-based online cryptocurrency platform Cred Inc.
Oklahoma City-based Gulfport Energy, which claimed liabilities of more than $1 billion, filed for Chapter 11 bankruptcy protection November. 13. The company has secured $262.5 million in debtor-in-possession financing, with $105 million in new money available upon the bankruptcy court’s approval.
Interface Security Systems, which filed a Chapter 11 petition November. 11, listed its liabilities in the range of $100 million to $500 million. You Fit Health Clubs filed for reorganization under Chapter 11 on November. 9.
S&P Global Market Intelligence analysis found that so far 40 corporates with over $1 billion in liabilities have filed for bankruptcies. Maximum bankruptcy filings have been seen in the consumer discretionary sector (115) followed by Industrials (80), energy (65) and healthcare (50).
