The “Biblical” Default Wave Arrives: Here Is The Avalanche Of Bankruptcies Unleashed By Coronavirus, by Tyler Durden

This article examines just corporate debt and bankruptcies, but rest assured similar avalanches are coming in every category of debt. From Tyler Durden at zerohedge.com:

Two months ago, we said that it was just a matter of time before a “biblical” wave of bankruptcies was about to be unleashed on the US as a result of the coronavirus pandemic…

… and sure enough, the first wave is corporate defaults is starting to wash across US shores, with companies in every industry – from retailers, to airlines, and restaurants – but also sports leagues, a cannabis company and an archdiocese plagued by sex-abuse allegations. These are some of the more than 110 companies tracked by Bloomberg that have declared bankruptcy in the U.S. this year and blamed Covid-19 in part for their demise.

While some were in deep financial trouble even before governors ordered non-essential businesses shut to help contain the spread of the virus, most will reorganize and emerge from court smaller and less-indebted. But the hardest hit, are liquidating assets and closing for good.

Among the filers are some of the most iconic names of US business: Hertz, J.C. Penney and as of last week, Brooks Brothers, too. However most are small and medium-sized businesses scattered across the country. Their downfall might not normally garner much attention, but it does underscore the full extent of the damage Covid-19 has inflicted on the economy.

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3 responses to “The “Biblical” Default Wave Arrives: Here Is The Avalanche Of Bankruptcies Unleashed By Coronavirus, by Tyler Durden

    • Neil

      Thanks for the link. I was going to post that article, but I figured I already had posted the corporate bankruptcy article from Zero Hedge, and one article about souring debt was enough.

      Like

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